After the U.S. dollar had a bit of a comeback Monday when U.S. Treasury yields hit 4-year highs, major currencies are gaining against the dollar this morning on strong economic data and worries about the yields in the global equity markets.

Worries plague GBP/USD on both sides

U.S. Treasury yields broke through 2.7% Monday, hitting a target many forecasters weren’t anticipating until the end of the year. But the 10-year benchmark dipped below 2.7 percent, causing the dollar to resume its selloff this morning.

GBP/USD is trading up this morning just above 1.41 after dipping below 1.40 overnight. Sterling had a low performance on Monday, but seems to be regaining on the dollar’s retreat.

The U.K.’s political climate is still in flux as pressures mount around the country’s Brexit withdrawal bill, which heads to the House of Lords this week. Leaked government documents show that Brexit would hurt the country’s economic growth under almost any scenario. A hard Brexit is estimated to shrink the U.K. economy 8% in 15 years.

Eurozone GDP beats expectations

The Eurozone’s GDP report released Tuesday morning beat expectations and outpaced U.S. and U.K. reports from last week.

Eurostat reported the strongest annual growth in a decade for the single-currency area, jumping 2.5% in 2017 compared to the U.K.’s 1.8% for 2017.

This news is helping EUR/USD stay above the 1.24 mark after strong pushback from the dollar on advanced reports that German inflation figures, tracked by CPI, missed estimates.

USD/JPY nearing multi-month lows

As the dollar lost traction against the euro and the sterling, it’s also slipping against the Japanese yen. The pair is trading in the low 108s off the dollar’s weakness and mixed data from Japan overnight. Unemployment ticked up for December, but retailer sales surged beating expectations of a decline.

Coming up

Later this morning, Bank of England President Mark Carney is expected to speak. President Trump will give his first State of the Union (not “Uniom” as the typo on members of Congress’ tickets said) tonight. And the U.S. Federal Reserve will give its policy statement Wednesday.