USD flows: Mild recovery on Powell

The USD is recovering modestly after Powell’s comments at the ECB conference in Sintra, with US front end yields moving higher as he throws some doubt on the prospects of a July rate cut. The Other comments were mixed with Bailey sounding mildly dovish, Lagarde trying to sound hawkish an Ueda still indicating a hawkish bias. But the USD has fallen a long way in the last week and ahead of Thursday’s employment report some squaring of shorts may be seen.