Dollar Rises on a Resurgent Rally in Yields, As Yen and Euro Decline
Login

Dollar Rises on a Resurgent Rally in Yields, As Yen and Euro Decline

Estimated Reading Time: 2 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:

Dollar rides on a renewed rally in US treasury yields and trades broadly higher today. The greenback’s strength is quite overwhelming for now. On the other hand, Yen and Swiss Franc are trading as the weakest ones, followed by commodity currencies.

Atlanta Federal Reserve President Raphael Bostic said on Tuesday that he does not anticipate the Federal Reserve will have to do much in response to rising US Treasury bond yields. Currently, the 10-year US Treasury bond yield, which touched its highest level in more than a year at 1.774% earlier in the day, is up 1% at 1.731%. The US Dollar Index largely ignored these comments and was last seen rising 0.37% at 93.28.

US Bond Yields are expected to see a more gradual and stilted rise during the second quarter, with an elevated risk of a short-term pullback in the first part of the quarter.

USD/JPY has lifted above the 110.00 level for the first time since last March when the COVID-19 crisis first started to significantly impact financial markets. The continued march higher for USD/JPY has been supported by the ongoing rise in long-term US yields ahead of Biden’s long-term infrastructure spending plans.
Greenback Rises Against the Euro and Yen
After consolidating in its pre-weekend range yesterday, the dollar has been lifted through JPY110 with the help of rising US yields. It is the highest the dollar has been since last March when it recorded a high near JPY111.70. In February 2020, the dollar spiked to almost JPY112.25. Support will likely now be encountered in the JPY109.85-JPY110.00 area.

The euro settled in North America yesterday near session lows ($1.1765) and, after a slow start in Asia Pacific turnover, lurched lower and fell a little below $1.1735 before European markets opened. An initial attempt to recover stalled near $1.1750.

There is an option for almost 700 mln euros at $1.1740 that expires today, but it has likely been neutralized. Although there may be some support around $1.1700, the risk extends toward $1.16, which it last saw as the polls in the US were closing last November.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News