September 25, 2023

Today In Forex: The Dollar Continues To Rise As The Yield On The United States’ Bonds Rises

On Tuesday, January 18, this is everything you need to know:

The Buck posted moderate gains versus its major counterparts on Monday and appeared to be maintaining its positive trend early Tuesday, with the US Dollar Index surging beyond 95.30.

The yield on the benchmark 10-year US Treasury note is at its greatest level in two years, approaching 1.85%, up more than 1% daily. Germany’s ZEW Survey will headline the European economic calendar on Tuesday, in advance of the US Empire State Manufacturing Index data.

S&P Futures and Nasdaq Futures, on the other hand, remained below 0.4% and 0.9%, respectively, at the time of publication, indicating that safe-haven movements may continue to dominate the markets in the afternoon.

Increased geopolitical tensions as a result of the Russia-Ukraine war, as well as an increase in coronavirus infections in China, appear to be dragging on risk sentiment.

Major Exchanges And Crypto

EUR/USD is nearing 1.1400 following a slightly weaker close on the first day of the week. The pair is still at the whims of the Dollar’s market price.

The GBP/USD currency pair maintained its downward reversal early Tuesday and is now edging closer to 1.3600. Political uncertainty in the UK and nasty market sentiment might keep the pair on the defensive.

Earlier in the day, the ONS reported that the jobless rate fell to 4.1% from 4.2%, as predicted. In November, average earnings, including bonuses, increased by 4.2%, compared to 4.9% in October.

After finishing in the positive region on Monday, USD/JPY surged to 115.00 on the strength of soaring US Treasury bond rates. As predicted, the Bank of Japan (BOJ) maintained its current monetary setting option.

Haruhiko Kuroda, Governor of the Bank of Japan, stated that they are not contemplating raising the key rate or altering the existing monetary easing program. Additionally, the BOJ stated in its quarterly report that signs of economic recovery are becoming more visible.

Gold moved within a narrow range on Monday and ended the day largely flat near $1,820. In the early European session, rising US Treasury bond rates appeared to have begun to weigh on the yellow metal.

Despite sustained Dollar gains on Monday, USD/CAD slipped lower and tested 1.2500 early Tuesday. The rising price of crude oil bolsters demand for the commodity-related Loonie.

The Bank of Canada’s (BOC) Business Outlook Survey (BOS) indicated on Monday that business mood continued to rise at a rapid rate in the 4th quarter, with the BOS Signal reaching a record high of 5.99, up from 4.73 in the third quarter.

Bitcoin’s recovery has stalled and it has returned to the $42,000 level on Monday, where it appears to have entered a consolidation period early Tuesday. Ether fell more than 4% on Monday and came dangerously close to $3,000, wiping out a large portion of last week’s gains.

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