US dollar rallies to 5-week high as bond markets steady ahead of data release
The post US dollar rallies to 5-week high as bond markets steady ahead of data release appeared on BitcoinEthereumNews.com. The dollar climbed to its highest level in over five weeks on Tuesday, as traders across global currency markets repositioned ahead of a packed week of U.S. economic reports. The Bloomberg Dollar Spot Index rose 0.3%, reaching its strongest level since June 23, according to Bloomberg. That gain came as the greenback advanced against every Group-of-10 currency, with the euro suffering the most losses. The U.S. dollar has gained against other currencies. Source: Bloomberg European currencies dropped after the European Union finalized a trade agreement with the United States on Sunday. The deal, instead of easing fears, intensified concerns over how it could affect the EU’s economic outlook. The euro fell to its weakest level in more than a month, adding to the momentum behind the greenback. Yields slide as Fed holds rates steady U.S. Treasury yields slipped early Tuesday ahead of the Federal Reserve’s policy meeting. As of press time, the 10-year yield has dropped 1.6 basis points to 4.404%. The 30-year yield moved lower by 2.1 basis points to 4.944%, while the 2-year barely moved, sitting at 3.92%. Bond prices and yields move in opposite directions. Traders in the fed funds futures market have priced in a 97% chance that the Fed will hold rates steady at 4.25% to 4.5%, as measured by the CME FedWatch tool. The Fed begins its two-day meeting Tuesday, with a decision expected Wednesday. Ed Yardeni, president of Yardeni Research, said, “Odds are that it will be a non-event.” He added that the only thing worth watching is whether the FOMC keeps repeating the line: “We are in no rush to lower interest rates,” or gives any hint of changing course. David Kohl, chief economist at Julius Baer, echoed that. He doesn’t expect any rate cuts until September. “If there is more certainty…
The post US dollar rallies to 5-week high as bond markets steady ahead of data release appeared on BitcoinEthereumNews.com.
The dollar climbed to its highest level in over five weeks on Tuesday, as traders across global currency markets repositioned ahead of a packed week of U.S. economic reports. The Bloomberg Dollar Spot Index rose 0.3%, reaching its strongest level since June 23, according to Bloomberg. That gain came as the greenback advanced against every Group-of-10 currency, with the euro suffering the most losses. The U.S. dollar has gained against other currencies. Source: Bloomberg European currencies dropped after the European Union finalized a trade agreement with the United States on Sunday. The deal, instead of easing fears, intensified concerns over how it could affect the EU’s economic outlook. The euro fell to its weakest level in more than a month, adding to the momentum behind the greenback. Yields slide as Fed holds rates steady U.S. Treasury yields slipped early Tuesday ahead of the Federal Reserve’s policy meeting. As of press time, the 10-year yield has dropped 1.6 basis points to 4.404%. The 30-year yield moved lower by 2.1 basis points to 4.944%, while the 2-year barely moved, sitting at 3.92%. Bond prices and yields move in opposite directions. Traders in the fed funds futures market have priced in a 97% chance that the Fed will hold rates steady at 4.25% to 4.5%, as measured by the CME FedWatch tool. The Fed begins its two-day meeting Tuesday, with a decision expected Wednesday. Ed Yardeni, president of Yardeni Research, said, “Odds are that it will be a non-event.” He added that the only thing worth watching is whether the FOMC keeps repeating the line: “We are in no rush to lower interest rates,” or gives any hint of changing course. David Kohl, chief economist at Julius Baer, echoed that. He doesn’t expect any rate cuts until September. “If there is more certainty…
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