Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar index was trading near an 11 month high this morning during Asian trade hours. The dollar was buoyed by rising Treasury yields. In contrast, the British Pound was still struggling near November 2017 lows. Traders in that market are waiting on the monetary policy decision from the Bank of England.
The dollar index, which measures the U.S. currency against six Forex majors, was trading at 95.11. Overnight it hit a high of 95.299. That was its highest price point since July 2017.
The USD/JPY Forex market was flat at 110.38 yen. Overnight, this market was up 0.3 percent. The U.S. currency fell to a weekly low price point of 109.55 on Tuesday.
The EUR/USD market was higher. It was last trading at $1.1577. Yesterday, it lost 0.15 percent.
The GBP/USD was flat this morning. It was trading at $1.3173. Overnight, it hit a seven month low at $1.3145.
The Pound recovered after Prime Minister Theresa May won a Brexit vote in parliament. She managed to avert disaster and a rebellion. This would have undermined her ability to govern.
The Sterling’s recovery is being capped as investors are waiting on the Bank of England’s monetary policy due out today. This decision will affect the Pound’s near-term direction as the central bank considers a future rate hike.
Treasury Yields Boost the U.S. Dollar
Supporting the U.S. currency was a recovery in long-term Treasury yields. They recovered from three week lows thanks to risk aversion that was in play at the open of the week. That was thanks to an ongoing trade spate with China and the United States. Risk aversion has eased for now
Remarks from Federal Reserve Chairman Jerome Powell, also supported Treasury rates. He said that the central bank will continue its gradual pace of rate hikes this year.
