© Reuters. The dollar rises thanks to the rise in US bond yields
FXNEWSTODAY – The US dollar rose in the European market on Monday against a basket of global currencies, on the verge of achieving its first gain within the last three days, in light of the activity of currency purchases as the best available investment, thanks to rising returns.
The yield on 10-year Treasury bonds rose to a new 16-year record above the pivotal barrier of 5.000%, after Federal Reserve Chairman Jerome Powell’s recent comments about tightening financial conditions in the United States.
American
The dollar index rose by about 0.2% to the level of 106.33 points, from the opening level of today’s trading at 106.16 points, and recorded the lowest level at 106.05 points.
The index ended Friday trading down by 0.1%, the second daily loss in a row, in light of weak demand levels.
The US dollar index lost 0.5% last week, the second weekly loss in the last three weeks, in light of the activity of correction operations and profit-taking, after a period of strong gains.
Yield on US Treasury bonds
The yield on ten-year US Treasury bonds rose on Monday by 2.1%, resuming gains that were halted in previous trading, recording the highest level in 16 years at 5.021%.
This development in the US bond market comes after Federal Reserve Chairman Jerome Powell said last week that the strength of the US economy and tight labor markets may call for tighter financial conditions.
American interest
Futures pricing for the possibility of raising US rates at a pace of 25 basis points during the November 1 meeting is stable at 2%, and futures pricing for the possibility of keeping interest rates unchanged at 98%.
Futures pricing for the possibility of raising US interest rates at a pace of 25 basis points during the December 13 meeting is stable at 25%, and futures pricing for the possibility of keeping interest rates unchanged is at 75%.
Economic data
In order to re-price these contracts, investors are awaiting, at successive times this week, the release of many important data in the United States, on gross domestic product during the third quarter, on the main sectors that make up the American economy during October, and on personal consumption expenditures during September. /September.
2023-10-23 13:30:00
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