Dollar stands tall as U.S. yields resume climb

LONDON Reuters) – The U.S. dollar gained on Monday, climbing towards a 3-1/2-month high, as a broad rise in Treasury yields spooked investor sentiment in stock markets.

Having fallen 4% in the last quarter of 2020, the dollar has strengthened more than 2.4% year-to-date against rivals as investors expect the broad rise in U.S. bond yields to weigh on stretched equity valuations and boost the greenback’s appeal.

Sterling Continues Climb as PM Johnson Moves out of ICU

“Rising U.S. yields have added to equity market volatility and supported the US dollar,” UBS strategists said in a daily note. “The Federal Reserve remains dovish, but chair Jerome Powell chose not to push back verbally against higher yields providing a further short-term boost to the greenback.”

Yield trends have diverged across major markets.

Sterling Continues Climb as PM Johnson Moves out of ICU

While U.S. yields increased a hefty 10 basis points last week, German yields dipped nearly 5 basis points, pulling the euro to a near four-month low below the $1.19 level.

BofA analyst Athanasios Vamvakidis argued the potent mix of U.S. stimulus, faster reopening and greater consumer firepower was a clear positive for the dollar.

The Senate passed a $1.9 trillion COVID-19 relief plan, a day after a stunning U.S. jobs report sent the greenback to its highest level since November 2020.

FX Signals – Dollar climbs against yen

The Australian dollar rose 0.2% to $0.7696, but was well off its session high of $0.77230. The New Zealand dollar was down about 0.1% after earlier rising 0.4% to $0.719.

Dollar stands tall despite

The antipodean currencies have been in demand because of their links to the global commodities trade.

The dollar held near a one-month high against the British pound, at $1.3819. Against the low-yielding yen JPY=EBS, the greenback held steady at 108.46 yen, having hit a nine-month high of 108.645 on Friday.

Dollar stands tall as U.S. yields resume climb

UK EU will resume trade talks

Dollar stands tall as U.S. yields resume climb

Forex Signals Learning Guides, to help you get started with trading. Grow your Learning knowledge on the capital markets. URL FxPremiere.com was Founded in 2010. Since then has grown with over 23,000 live subscribers globally. Daily Trading Alerts are sent by our VPS Networks worldwide via Telegram. Subscribe to our Signals and start receiving Forex Day Trading Signals from the very next trade! Forex Signals Learning Guides below with guide you with every trade you make!

FX Signals

The most traded pairs of currencies in the world are called the Majors.EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD, Gold, Oil and many many more… Forex Trading comes with it high risk. We help by referring only the very best forex brokers available in the marketplace. Your in safe hands with our partners.With our free forex learning guides you will be able to educate yourselves with the most up to date forex basics required in order to enter the Capital Markets. FxPremiere.com Learning centre is now available for all to read. With blog posts written monthly on the most common searched terms.