The US dollar (USD) remains firm, supported by lower risk appetite and rising US Treasury yields, says Shaun Osborne, chief FX strategist at Scotiabank.
Firmer USD, supported by rising yields
“Global bonds are under pressure on the day, but the rise in US 10-year bond yields through the October peak suggests the rebound may extend a little further at least. Bloomberg notes that one analyst suggests the 10-year yield could reach 5% in the next six months due to concerns about persistent inflation and weak US fiscal policy.
“Fiscal excess is, in my view, a growing risk for the USD overall, but the impact of weak fiscal policy settings may be a relatively slow burn for FX, and may not be factored into markets until after the US elections’
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
