US Dollar slips as U.S. yield curve flattens

LONDON (Reuters) – FX SIGNALS – The U.S. dollar lurched lower on Monday, stepping back from a 1-1/2 year high tested on Friday, as hawkish comments over the weekend by a Federal Reserve official sent the U.S. yield curve to its flattest levels in three months.


While the Fed has clearly telegraphed a March interest rate hike after its meeting last week, some investors expect policymakers are preparing the markets for a faster pace of rate increases this year to check inflationary pressures.

A quicker pace of rate hikes is also seen as dampening future growth expectations, a scenario that is playing out in the bond markets where spreads between two and ten-year U.S. Treasury yields fell below 59 bps for the first time since early November in a phenomenon known as “bear-flattening”. [US/]


Gbpusd uptrend by fxpremiere on


Eurusd downtrend by fxpremiere on


Audusd uptrend by fxpremiere on


Usdjpy downtrend by fxpremiere on


Eurjpy uptrend by fxpremiere on


Gbpjpy uptrend by fxpremiere on

Though markets are unsure on the impact of the expected Fed’s rate hike trajectory on growth and inflation, some investors took the latest comments from Fed’s Bostic as an opportunity to take profits on the dollar’s rally in recent days. Commodity currencies at multi-month highs

Market expectations of as many as five rate hikes this year “reflects the growing belief that the Fed is behind the curve in fighting upside inflation risks and will need to deliver more front-loaded tightening,” Mizuho strategists said in a note.

Versus a basket of its rivals, the greenback slid 0.2% to 97.02 after rising to a mid-2020 high at 97.44 on Friday. The dollar’s 1.6% jump last week was the biggest weekly rise since mid 2021. Long dollar positions remained near their highest levels this year. Trading Forex

The Australian dollar was among the early gainers versus the struggling greenback with the Aussie up more than 0.5% at $0.7043 before a central bank policy meeting on Tuesday. Dollar Slips to New Lows


The Bank of England also holds its meeting on Thursday, with a Reuters poll of economists predicting a second rate hike in less than two months, as the BOE reverses more pandemic stimulus, after inflation jumped to its highest in nearly 30 years.

The European Central Bank also has a policy meeting on Thursday. While no policy change is expected, analysts are starting to warn that approaching rate hikes from the Fed will shrink the ECB’s window for action. Dollar slips after last week’s climb

In cryptocurrencies, bitcoin was holding above $37,000 after a quiet weekend for the digital asset.

US Dollar slips as U.S. yield curve flattens

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. eurusd signals

Forex Signals Telegram Learning centre is now available for all to read. With blog posts written monthly on the most common searched terms.

US Dollar Up, Major Currencies on Hold

The Week Ahead

Euro dollar volatility surges US Dollar index Up Yen down to Three

Dollar droops as economic optimism

Dollar Flat Ahead of PMIs

Dollar set for biggest weekly rise