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Dollar finds support from Treasury Yields

dollarThe almighty dollar inched higher Thursday morning during Asian trade hours. The dollar found support from higher long-term U.S. Treasury yields. There was also improving investor appetite for risk assets, There are, however, some lingering concerns over the U.S.-China trade spat. This kept the buck in check.

The U.S. dollar index, which measures the U.S. currency against a group of six other currencies, was flat at 89.635. The USD rose 0.1 percent on Wednesday.

The USD/JPY Forex market was steady at 107.250 yen. It rose 0.2 percent the previous day.

However, the gains with the greenback were limited. Looking at the scope of the increase by the 10-year Treasury note yield, which was up by more than five basis points during North American trade hours. This was its biggest daily gain since March 2.

Also, the trade spat between the United States and China has heightened volatility in financial markets over the last month.

Dollar Traders listen to comments from the U.S. Japanese Summit

The yen showed ignored yesterday’s U.S.-Japan summit. President Donald Trump and Japanese Prime Minister Shinzo Abe agreed to intensify trade consultations between the two countries.

The EUR/USD Forex market was up 0.05 percent to $1.2381. This market saw small gains during the previous trade session.

In Turkey, the Turkish lira was steady after rallying more than two percent against the dollar. This rally comes after the country’s president Tayip Erdogan called for snap elections. They are scheduled for June 24.

The lira was buoyed by Erdogan’s call for early elections. This decision was seen as the government’s acknowledgment for tighter monetary policy. This will be used to combat inflation.

At last glance, the lira was trading at 4.019 against the dollar.

In other headlines, Middle East tension, with Syria, could add to some trade volatility with the greenback and other Forex majors.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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