The US dollar index extends gains to highest levels since Nov 2020
|- The DXY has printed a fresh high in the Asian session.
- US dollar safe haven theme priced in as euro slides.
At the time of writing, DXY is trading at92.6240 vs a high of 92.6730 from a low of 92.567, and is 0.10% bid on the data so far.
The euro is under pressure which is helping to fuel the rally in the greenback due to the divergence in the US pandemic response to that of the EU's and the implications for the recoveries in each economy.
The safe-haven flows into the greenback have helped to elevate the currency despite a slide in US yields overnight.
''US bond markets rallied overnight, falling risk sentiment and a successful 5year treasury auction saw treasury yields rise in the long end,'' analysts at Westpac explained.
''2-year treasury yields remain unchanged at 0.14%, 5-year yields fell to 0.81% and 10-year yields fell to 1.59% before bouncing back to 1.61% following Fed’s Williams’ comments on long term inflation. The 7year treasury auction tomorrow is the key focus for markets as the weak 7year auction sparked a sell-off last month.''
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