Free Trial

Greenback Recovers Off Lows as Treasury Rally Moderates

  • Asia-Pac trade kicked off with the dollar under pressure, a move triggered by the moderation in US yields, with the 10y yield bottoming out at 4.1726% alongside the European open. The greenback has recovered off lows headed into NY hours, with few macro datapoints or speakers to distract. As a result, some market focus may be being paid to potential USD demand from corporates later today, with Tuesday marking value-date month-end.
  • Headed into the NY crossover, US yields recovering further off lows, further assisting the bounce in the greenback.
  • The single currency is the poorest performer, with the EUR fading ahead of Thursday's August CPI Estimate. CPI is again expected to fade to 5.1% from 5.3%, marking the lowest reading since late 2021. EUR/GBP remains pinned to the 50-dma, dipping below the mark that crosses at 0.8585 today.
  • AUD, NZD are among the best performers, benefiting from further signs of Chinese stimulus. Bloomberg reports that China's largest banks are considering a further deposit rate cut to support domestic growth.
  • US JOLTS job openings figures take focus later today, released alongside consumer confidence for August. Fed's Barr appears for a second consecutive session, speaking on banking services.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.