U.S. Dollar Advances On Rising U.S. Bond Yields
May 17 2018 - 1:55AM
RTTF2
The U.S. dollar climbed against its major counterparts in early
European deals on Thursday, as U.S. treasury yields rose, with the
10 year yield above 3.10 percent for the first time since July
2011.
Solid economic data on U.S. retail sales, factory production and
housing starts released this week pointed to a strengthening
economy.
The benchmark yield on 10-year note rose 3.11 percent, while
that of 2-year equivalent was up by 2.59 percent. Yields move
inversely to bond prices.
Investors await U.S. reports on weekly jobless claims, leading
economic indicators and Philadelphia-area manufacturing activity
due later in the day for more direction.
Also in focus is the start of the second round of trade talks
between the U.S. and China today in a bid to avert a potential
trade war.
The greenback traded mixed against its major counterparts in the
Asian session. While it held steady against the franc and the euro,
it rose against the yen. Against the pound, it declined.
The greenback recovered to 1.3493 against the pound, from a
2-day low of 1.3569 hit at 10:00 pm ET. The greenback is seen
challenging resistance around the 1.32 area.
Having fallen to 0.9987 against the franc at 10:30 pm ET, the
greenback reversed direction and advanced to 1.0020. The greenback
is likely to find resistance around the 1.03 level.
The greenback reversed from an early low of 1.1837 against the
euro, rising to 1.1793. The next possible resistance for the
greenback is seen around the 1.16 area.
The greenback spiked up to 110.74 against the yen, its highest
since January 23. The greenback is poised to challenge resistance
around the 112.00 mark.
Data from the Cabinet Office showed that Japan core machine
orders fell 3.9 percent on month in March.
That missed expectations for a decline of 3.0 percent following
the 2.1 percent increase in February. The greenback was trading at
0.7532 against the aussie and 0.6894 against the kiwi, up from
early 3-day lows of 0.7548 and 0.6938, respectively. If the
greenback continues its rise, 0.73 and 0.66 are possibly seen as
its next resistance levels against the aussie and the kiwi,
respectively.
On the flip side, the greenback fell back to 1.2753 against the
loonie, just few pips short of its early 3-day low of 1.2750. On
the downside, 1.26 is possibly seen as the next support level for
the greenback.
Looking ahead, U.S. weekly jobless claims for the week ended May
12 and leading index for April are scheduled for release in the New
York session.
The Bank of England Chief Economist Andy Haldane will give
speech at the Economic Statistics Centre of Excellence Conference
on Economic Measurement in London at 12:00 pm ET.
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Aug 2024 to Sep 2024
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Sep 2023 to Sep 2024