Rising Treasury Yields Support the Dollar's Strength

2024-07-02
Summary:

The dollar rose with Treasury yields, driven by expectations of Donald Trump winning the presidency and starting another trade war.

EBC Forex Snapshot, 2 Jul 2024


The dollar was supported by rising Treasury yields with analysts attributing the move to expectations of Donald Trump winning the presidency and launching another round of trade war.


The yen dropped to its lowest level since 1986. Japan's finance minister said on the authorities were vigilant to sharp currency moves, but stopped short of giving a clear intervention warning.

USDJPY

Japan's economy shrank more than initially reported in Q1 in a rare unscheduled revision, darkening prospects for a fragile recovery. That could affect the timing of the Bank Of Japan's next interest rate hike.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 24 Jun) HSBC (as of 28 Jun)

support resistance support resistance
EUR/USD 1.0668 1.0916 1.0627 1.0815
GBP/USD 1.2619 1.2860 1.2545 1.2795
USD/CHF 0.8827 0.9158 0.8875 0.9044
AUD/USD 0.6564 0.6729 0.6578 0.6708
USD/CAD 1.3577 1.3846 1.3621 1.3786
USD/JPY 153.60 160.00 157.35 162.50

The green numbers in the table indicate that the data has increased compared with the previous time; the red numbers indicate that the data has decreased compared with the previous time; and the black numbers indicate that the data has remained unchanged.


Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The US dollar was hovering near three-week lows

The US dollar was hovering near three-week lows

On Friday, the US dollar neared three-week lows ahead of payrolls, while the pound held strong with Labour poised for a UK election landslide.

2024-07-05
Dollar was on the Back Foot on Thursday

Dollar was on the Back Foot on Thursday

Thursday saw the dollar weaken after ADP reported fewer job gains in June, aligning with increased initial unemployment claims last week.

2024-07-04
The dollar remained on the back foot on Wednesday

The dollar remained on the back foot on Wednesday

On Wednesday, the dollar weakened as Fed Chair Jerome Powell's dovish remarks, despite a strong jobs report, pushed Treasury yields down.

2024-07-03