Rising US Bond yields uplift the Dollar; Forex

The dollar facing an upward trend due to the rising US bonds directly impacting on US Dollar. Forex Today.

After a three-day weekend, US bond markets returned, and the 10-year reference yield increased toward 4%, supporting the dollar early on Tuesday.

The US Dollar Index is currently above 113.20, its highest level in more than ten days, reflecting the risk-averse market environment that has allowed the dollar to continue to outperform its peers.

The US economic docket will include the IBD/TIPP Economic Optimism Index and the NFIB Business Optimism Index, but the market’s attitude is likely to continue to have an impact on the movement of major currency pairs.

Investors will closely monitor central bankers’ speeches as well.

Despite the lack of trade on Monday, Wall Street’s major indexes ended up closing down, just before important third-quarter earnings reports from major financial companies including JPMorgan, Citi, and Wells Fargo.

US market index futures were last seen shedding 0.3% to 0.4%, indicating the caution of investors.

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Australia’s data during Asian trading hours showed that while economic conditions improved somewhat in September, company confidence declined.

After suffering significant losses on Monday, the AUD/USD pair pushed lower and was last seen trading at 0.6260, the price at which it had last traded in April 2020. This is a daily loss of more than 0.6%.

In the second half of the trading day on Monday, the common currency showed some resistance versus the dollar, according to reports that Germany was receptive to the concept of joint EU debt to address the energy problem in the euro region.

German authorities denied these rumours, which caused the EUR/USD to become negative and post daily losses.

The pair is swaying sideways at about 0.9700 as of the time of publication.

The Bank of England (BOE) keeps introducing new policies to help the market, but the British pound is having trouble finding buyers.

The ILO Unemployment Rate decreased from 3.6% to 3.5% in the three months leading up to August, according to figures released earlier in the day by the UK’s Office for National Statistics.

Related: Gold Price forecast: XAUUSD drop below $1670 on a strong US dollar and risk-off impulse

The Average Earnings Including Bonus increased by 5%, up from 5.5% in July, and the Claimant Count Rate stayed constant at 3.9%, as anticipated.

GBP/USD was last seen trading at 1.1000, down 0.5% for the day.

The USD/JPY rate is still above 145.50 and close to the point when the Bank of Japan (BoJ) intervened in late September.

Fumio Kishida, the prime minister of Japan, stated earlier in the day that the BoJ must keep its lax policy until wages rise and urged businesses to raise pay along with prices.

Following gold’s break below $1,700 at the start of the week, the bearish sentiment surrounding the precious metal grew stronger.

On Monday, XAUUSD dropped 1.5%, and it was last seen bouncing about in a small channel just below $1,670.

In the early hours of Tuesday, Bitcoin was just shy of $19,000 after losing roughly 2% on Monday. With a daily loss of 0.6%, Ethereum was last seen at $1,280 after falling below $1,300.

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