Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar was steady this morning, during Asian trade hours. The dollar is trading just below a multi month high. This rally in the greenback came during Wall Street hours after the benchmark 10 year bond yield traded at the key three percent for the first time since January2014.
As a result there was a selloff U.S. stocks. This, then in turn, slowed the pace of the rally being seen in the U.S. currency.
The broadly traded U.S. dollar index, which tracks the greenback against six major Forex trading partners, was fairly flat this morning during Asian trade hours. It was trading at 90.824. This level follows a rally, during North American trade hours, to a four month high of 91.016.
Dollar Traders continue to watch Trade Related Headlines
The U.S. currency has been inching higher, without stopping, this past week. Traders watched an easing of tensions between the United States and China, on trade, which allowed traders to support USD related instruments. A surge in Treasury yields was also quite supportive.
The U.S. benchmark 10 year Treasury yield is at three percent. This is the first time in more than four years. This triggered a selloff on Wall Street. That move started to weigh on the USD.
Looking at the benchmark USD/JPY Forex market, it was a bit higher at 108.935 yen. The USD pulled back from a two and half month high at 109.20. This was hit on Tuesday. Overnight, the S&P 500 and the Dow Jones Industrial Average saw their biggest losses since April 6.
The selloff in stocks was supportive for the yen. The Japanese currency is oft bought when stocks fall. This is because it is a safe haven asset. However, the USD will, in all likelihood, see further gains this month.
