- US Dollar Index snaps two-day uptrend, bounces off intraday low of late.
- US 10-year Treasury bond yields print the first intraday loss in five at 1.5-month high.
- Multiple nations announced requirement of COVID-19 tests for Chinese travelers.
- Mixed US data, lack of major catalysts triggered consolidation despite risk-off mood.
US Dollar Index (DXY) holds lower grounds despite bouncing off the intraday bottom early Thursday in Europe. In doing so, the greenback’s gauge versus the six major currencies prints the first daily loss in three around 104.32 by the press time.
DXY’s latest pullback could be linked to the market’s rush towards the Yen and Swiss Franc, as well as the Gold prices, amid sour sentiment and mostly downbeat US data. The same could be linked to the retreat in the US Treasury bond yields from a multi-day high.
That said, the benchmark US 10-year Treasury yields dropped 2.2 basis points to 3.86% by the press time, after rising the most since October 19 the previous day. With this, the key bond coupons retreat from the six-week high while snapping a four-day uptrend.
Talking about the key risk-negative headlines, fresh Covid-linked prerequisites for Chinese travelers, amid doubts over Beijing’s reporting of data and a jump in the virus numbers weigh on sentiment. On the same line could be Russia’s rejection of peace with Ukraine unless it accepts the treaty allowing additional territories, as well as an escalated war in the city of Kherson.
On Wednesday, US Pending Home Sales for November dropped to -37.8% YoY versus -36.7% expected and -37.0% previous readings while the Richmond Fed Manufacturing Index for December improved to 1.0 versus -4.0 anticipated and -9.0 prior.
Amid these plays, Wall Street closed in the red but S&P 500 Futures remain lackluster despite the downbeat performance of the Asia-Pacific shares.
Looking forward, weekly prints of the US Initial Jobless Claims and Chicago PMI for December will be eyed for short-term directions but major attention will be given to the risk catalysts and the bond market moves during the year-end inaction.
Technical analysis
US Dollar Index remains sidelined between the 21-DMA resistance and a two-week-old ascending support line, respectively near 104.60 and 104.00 by the press time.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold gives away some gains, slips back to $2,980
Gold retraced from its earlier all-time highs above the key $3,000 mark on Friday, finding a footing around $2,980 per troy ounce. Profit-taking, rising US yields, and a shift to a risk-on environment seem to be putting the brakes on further gains for the metal.
EUR/USD remains firm and near the 1.0900 barrier
EUR/USD is finding its footing and trading comfortably in positive territory as the week wraps up, shaking off two consecutive daily pullbacks and setting its sights back on the pivotal 1.0900 mark—and beyond.
GBP/USD remains depressed, treads water in the low-1.2900s
GBP/USD is holding steady in consolidation territory after Friday’s opening bell on Wall Street, hovering in the low-1.2900 range. This resilience comes despite disappointing UK data and persistent selling pressure on the USD.
Crypto Today: BNB, OKB, BGB tokens rally as BTC, Shiba Inu and Chainlink lead market rebound
Cryptocurrencies sector rose by 0.13% in early European trading on Friday, adding $352 million in aggregate valuation. With BNB, OKB and BGB attracting demand amid intense market volatility, the exchange-based native tokens sector added $1.9 billion.
Week ahead – Central banks in focus amid trade war turmoil
Fed decides on policy amid recession fears. Yen traders lock gaze on BoJ for hike signals. SNB seen cutting interest rates by another 25bps. BoE to stand pat after February’s dovish cut.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.