Dollar Edges Up as Bonds Extends Bullish Run

The dollar continues its outstanding performance as bonds rises in the market. The U.S. Treasury yield is pushing the dollar up as it hits a 10-year rise, growing by a total of 3% all-in-all. The greenback hits a massive milestone as it tramples a basket of currencies in the previous session.

The rising treasury yield is brought by investors who are betting on another interest rate hike this year. They are looking to push the U.S. Treasury yield as the hawkish tone from the Fed signals an additional interest rate hike this 2018.

Furthermore, the dollar’s bullish streak is looking to push the currency to an almost 3 month high. Currently, the greenback is hovering somewhere around an 8 week high. The greenback is expected to extend its massive run as the Federal Reserve signal another hawkish tone for the next interest rate hike.

The Fed is also looking to announce another interest rate hike this year. According to the Federal Reserve, their odds for adding another interest rate hike this year manage to rise to significant levels this month, putting it to 40% from the latter which was 25%.

The positivity of adding another interest rate hike managed to capture a lot of investors; this announcement also signaled the fact that the U.S. economy may see a booming growth and inflation may also pick up this year.

Furthermore, the dollar index managed to extend its prowess in the market today, tallying a total of 0.65% increase against a handful of major currencies to 90.67. The upbeat economic report continues o push great greenback performance despite fluttering at the start of the year.

Dollar Index Rises on Bonds Upbeat Performance

Dollar Index Rises on Bonds Upbeat Performance

Dollar Index Price

The dollar index is looking to break its dry spell as it hovers just below the lucrative 91.00 figure. Furthermore, the U.S.-Japan and U.S.-German yield differentials managed to drift in the process, giving the dollar an edge against their local currencies.

The dollar managed to hit a two-month high against the yen as yields continue to inflate. The pairing managed to hit a total of 108.87 figures. The dying trade wars debacle is also looking to keep investors away from their former safe haven.

Furthermore, the yen is also constantly pressured by the growing tension to the country’s Prime Minister Shinzo Abe. The PM’s approval ratings are looking to shed some number and dwindle down lower than usual.

The dollar also hit a massive run against the pound. The currency was trading at a low, hovering just below the $1.4000 mark. On the other hand, the euro managed to slump by a total of 0.63% to $1.2211 as the greenback picks up its steam.

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