US dollar down following lower state-bond yield

Posted 14 May, 2018

US dollar has posted weakening vs the majors this week. The negative dynamics are related to falling state-bond yield in the USA. Besides, markets are also expecting the release of retail sales data in the USA and Japan's GDP figures to be made in the course of the week. These reports can be the new locomotives for the trading.

The US Dollar index decreased to some 92.30. For reference, the rate reached the peak at 93.22 last Wednesday but then started sliding. However, the April uptrend is said to remain possible.

At the end of last week, consumer inflation in the USA showed lower than expected figures, which in fact restrain the third interest rate revision in the country this year. As a result, 10Y state-bonds yield dropped in the USA, after exceeding 3% level a week before. Notably, with the yield below 3% at 2.96%, the greenback has also remained without support.

The Australian dollar rose to some 0.7555 against its American counterpart. The Reserve Bank of Australia is about to announce the minutes of the meeting this week. However, insiders are unlikely to react strongly to the report considering a steadily soft policy of the regulator despite still weak figures. In China, PBOE set the base rate for the yuan at 6.3345 against the US dollar (6.3524 earlier). The yuan-to-US dollar exchange rate was recorded at 6.3361.

After some weakening, the US dollar somewhat rebounded vs the yen reaching 109.47. The situation will become clearer after the release of Japan's GDP and consumer inflation this week.

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14 May, 2018 11:53

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