U.S. Dollar Climbs As Treasury Yields Remain Firm
March 15 2021 - 12:59AM
RTTF2
The U.S. dollar advanced against its key counterparts on Monday,
as U.S. Treasury yields strengthened amid fears over a spike in
inflation.
The benchmark 10-year Treasury yields remained above 1.6 percent
as accelerating vaccinations and stimulus measures spurred hopes of
a faster recovery and higher inflation.
Treasury Secretary Janet Yellen said last week that U.S.
inflation risks remain subdued despite the Biden administration
stimulus.
Investors focus on the Fed meeting due this week for more clues
about economic growth outlook.
The decision will be published at 2 pm ET Wednesday, followed by
a press conference with Chairman Jerome Powell.
Markets will be keeping a close eye on Powell's comments about
the central bank's plans to address rising yields in the
future.
Traders also await U.S. reports on retail sales, industrial
production, housing starts, and regional manufacturing activity
this week for more direction.
The greenback edged higher to 1.1918 against the euro, 1.3896
against the pound and 0.9313 against the franc, off its early lows
of 1.1968, 1.3950 and 0.9276, respectively. The next possible
resistance for the greenback is seen around 1.16 against the euro,
1.37 against the pound and 0.94 against the franc.
The greenback appreciated to more than a 9-month high of 109.37
against the yen and a 5-day high of 0.7721 against the aussie,
after falling to 108.91 and 0.7776, respectively in early deals.
The greenback is likely to face resistance around 110.00 against
the yen and 0.75 against the aussie.
Reversing from its early low of 0.7216 against the kiwi and more
than a 3-year low of 1.2455 against the loonie, the greenback
recovered to 0.7181 and 1.2494, respectively. The greenback is seen
finding resistance around 0.70 against the kiwi and 1.27 against
the loonie.
Looking ahead, at 8:15 am ET, Canada housing starts for February
are scheduled for release.
Canada manufacturing sales for January and New York Fed's empire
manufacturing survey for March are set for release during the New
York session.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Mar 2024 to Apr 2024
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Apr 2023 to Apr 2024