- The US Treasuries sold off with yields rising to the highest level since summer of 2011.
- Fed’s Willaims sees the US growth above 4% in the second quarter while the “mission is not yet accomplished” on inflation.
The US Dollar is trading flat well above 110.00 line at around 110.30 against the Japanese Yen after the rout on the US Treasury market saw the benchmark yields rising as high as 3.089% on Tuesday before stabilizing at around 3.08%.
The Big Short day on the US Treasuries is providing a solid support for the US Dollar across the board with the greenback rising near 2018 highs against both European major the Euro and Sterling earlier on Tuesday as neither of the US macro data nor central bankers comments had such a massive influence on the market.
The Bank of Japan Governor Kuroda said on Tuesday it is true that some discussions are being made at Bank’s board on side-effects of its easy policy while confirming that the Bank of Japan has no plan to move 10-year yield target for time being as inflation distant from 2% target.
On the US side, the news of the Empire State manufacturing survey jumping up to 20.1 in May, well above the market expectations and the US retail sales rising 0.3% m/m in April hit the wires just before the heat of the moment saw the US Treasuries being sold off with yields rising to the highest level since summer of 2011.
San Francisco Federal Reserve President John Williams and the upcoming New York Fed president holding a permanent seat at the rate-setting FOMC said the US economy is seen rising 4.1% in the second quarter of this year while it is too soon to declare “mission accomplished” on inflation until it reaches 2% inflation target.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0650 amid renewed selling pressure in US Dollar
The EUR/USD pair edges higher to 1.0672 during the early Thursday. The recovery of that major pair is bolstered by renewed selling pressure in the US Dollar and a risk-friendly environment.
GBP/USD remains capped below 1.2470, eyes on US data
The GBP/USD pair trades on a softer note around 1.2450 on Thursday. The softer UK inflation data prompted the expectation that the Bank of England will start lowering interest rates in the coming months, which weighs on the Pound Sterling against the Greenback.
Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions
Gold price attempts another run to reclaim $2,400 amid looming geopolitical risks. US Dollar pulls back with Treasury yields despite hawkish Fedspeak, as risk appetite returns. Gold confirmed a symmetrical triangle breakdown on 4H but defends 50-SMA support.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price was not spared from the broader market crash instigated by a weakness in the Bitcoin market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Investors hunkering down
Amidst a relentless cautionary deluge of commentary from global financial leaders gathered at the International Monetary Fund and World Bank Spring meetings in Washington, investors appear to be taking a hiatus after witnessing significant market movements in recent weeks.