The dollar approached its strongest level in two years against the euro as diverging central-bank policies pushed U.S. Treasury yields to almost the highest versus their German counterparts since 1999.
The greenback fell from a six-year high versus the yen amid bets it gained too much, too fast. Germany sold 10-year bonds to yield less than 1 percent for the first time, reflecting Europe’s economic quagmire and the additional steps the European Central Bank may take to spur a recovery. The Federal Reserve is considering when to raise interest rates. Stocks slid.
“There’s interest to sell the euro,” said Vassili Serebriakov, a New York-based foreign-exchange strategist at BNP Paribas SA. “There’s been some concern about the strength of the growth momentum, and so you have lower yields and lower equities. The dollar-yen move is consistent with that.”
Recommended Content
Editors’ Picks
AUD/USD: Further losses retarget the 200-day SMA
Further gains in the greenback and a bearish performance of the commodity complex bolstered the continuation of the selling pressure in AUD/USD, which this time revisited three-day lows near 0.6560.
EUR/USD: Further weakness remains on the cards
EUR/USD added to Tuesday’s pullback and retested the 1.0730 region on the back of the persistent recovery in the Greenback, always against the backdrop of the resurgence of the Fed-ECB monetary policy divergence.
Gold flirts with $2,320 as USD demand losses steam
Gold struggles to make a decisive move in either direction and moves sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clings to modest gains near 4.5% and limits XAU/USD's upside.
Bitcoin price dips to $61K range, encourages buying spree among BTC fish, dolphins and sharks
Bitcoin (BTC) price is chopping downwards on the one-day time frame, while the outlook seen in the one-week period is a horizontal trade. In this shakeout moment, data shows that large holders are using the correction to buy up BTC.
Navigating the future of precious metals
In a recent episode of the Vancouver Resource Investment Conference podcast, hosted by Jesse Day, guests Stefan Gleason and JP Cortez shared their expert analysis on the dynamics of the gold and silver markets and discussed legislative efforts to promote these metals as sound money in the United States.