EURUSD has been under selling pressure for over two months now, with the EURUSD exchange rate currently entering levels last seen at the end of 2022. The US dollar has recently been gaining in value. This situation has been driven by the bond sell-off, which has led to a significant increase in US Treasury bond yields. The 10-year yields are approaching the 4.70% level, surpassing recent local highs. Following hawkish comments from Fed members, the dollar continued to strengthen, and investors are starting to price in the possibility of maintaining higher interest rates for an extended period.
On a chart comparing bond pricing with the US dollar index there is still significant potential for further USD (USDIDX) gains. Bond yields have broken through recent highs, and the dollar is following the same trajectory, albeit with a slight lag.
The EURUSD exchange rate has breached recent lows and is approaching the next support level at 1.037. Today, the dollar is once again one of the strongest currencies among developed economies.
Daily summary: Its fear, but not panic yet. Trump has shaken the markets again.
New front in the trade war: Greenland❄️Will Gold rise further❓
Why we should watch Japan’s surging bond yields
Canada's December CPI surprised to the upside ❓🏛️
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
