Market wrap: US dollar lower on Monday - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Markets were fairly stable overnight, awaiting the key FOMC and BoJ events on Wed, with little influential news out. The S&P500 is up 0.3%, and the US dollar is slightly lower.

Interest rates: US 10yr treasury yields eked a narrow, sideways range of 1.68%--1.70%. The 2yr ranged between 0.75% and 0.77%. Market pricing of the Fed funds rate is little changed, implying around a 20% chance of a rate hike in September, a 70% chance by December, and 100% by May 2017.

Currencies:  The US dollar index is around 0.3% lower. EUR rose from 1.1150 to 1.1180 via a spike to 1.1198. USD/JPY fell from 102.10 to 101.58. AUD rose from 0.7540 to 0.7473 and then fully retraced. Similarly, NZD is unchanged at 0.7300 after earlier rising to 0.7326. AUD/NZD ground higher from 1.0310 to 1.0340."