It looks like the benchmark 10-year yield has broken to the upside from the recent triangle pattern, which might be a strong bullish signal. The next target for that yield is at 1.7%.
Rising yields are generally bullish for the USD, and the EURUSD pair has been fading back toward the 1.20 level, while the USDJPY pair surged 100 pips.
Later in the day, April's Fed decision will be revealed. Investors expect the Fed to continue in its "inflation is only transitory" theme, possibly leading to another leg higher in equities. The Fed is in no hurry to tighten monetary policy.
From other news, Canadian retail sales will be released, most likely causing volatility in the USDCAD pair.
In Europe, Deutsche Bank posted its best quarterly profit since the first quarter of 2014. The strength at the investment bank helped offset the headwinds of an ongoing restructuring program and the coronavirus pandemic. The German DAX index was trading 0.3% higher during the London session.