💲US Dollar near 2 months highs

US Dollar is the strongest currency at the beginning of the week, increasing yields support 'greenback' 💵

The beginning of the week brings a clear strengthening of the dollar. EURUSD is reporting well below 1.10 and now even the Japanese yen is losing against the US currency. Looking at the dollar index, we are currently seeing a test of the 1-month peak, but there is only a slight movement above 103.3 for the index to score the highest levels since June. At the same time futures contracts on GOLD are erasing gains from last few weeks and are traded near important $1900 level.

What's more, yields are likely to be at their highest levels since November 2022 today, at 4.2% for the 10-year bond! The last time yields were at this level, the dollar index rate was at 112. Equally important, the dollar index may be preparing to break the downward trend line. This week, the greatest volatility on the index may occur on Wednesday during the publication of the Fed minutes of the last July meeting. 

Source: xStation5