Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar, Monday morning during Asian trade hours, was steady as the rally, seen over the last few weeks, has run out of steam. Traders noted a fall in Treasury yields as expectations that the Federal Reserve would launch a series of fast rate hikes faded.
The dollar index, which gauges the strength of the U.S. currency against a basket of six Forex partners, was flat at 92.520.
The dollar index was at a multi month high at 93.416 last Wednesday. The USD was supported by a spike in Treasury yields. This ignited a large interest rate gap between the United States and other countries giving the USD a yield advantage.
Yields then began falling after a weaker than expected consumer price data, out of the United States, dampened investor hopes of aggressive rate hikes from the Fed.
Dollar and Forex Traders watch Economic Data and other Headlines
Looking at other currencies, the EUR/USD Forex market was up this morning. It gained 0.05 percent to trade at $1.1948. The common currency recovered last week from $1.1823. This was the euro’s lowest price point since December 22.
Still, the euro is expected to face political headwinds. These should cap its gains against the USD.
The USD/JPY Forex market was flat. It was last trading at
109.330 yen. It has failed tice to break above the key level at 110.00. Both attempts happened earlier this month.
The AUD/USD Forex market was also up. It gained 0.1 percent to trade at $0.7553 after. The Aussie rallied from an 11 month low of $0.7413 set back on last Wednesday.
Looking at political headlines, in Europe, the anti-establishment 5-Star Movement, in Italy, which is a far-right League spent the weekend in talks to forge a policy program.
Italian government bond prices fell this past week. This meant that their yields rose sharply thanks to uncertainty about the country’s political future.
