The US dollar stays generally strong in mid-week.
The US Dollar index rose to 95.41. For reference, the highest level of the past 7 weeks was recorded at 95.84 yesterday.
The US Treasuries yield is at 3.225, slightly below the previously achieved peak over 7.5 years. However, the greenback remains in demand fueled by the anticipated faster revision of the interest rate.
The US dollar-to-yen rate increased to 113.22. The euro has not changed much against the US dollar, reaching now $1.1492, while yesterday it touched a multi-week bottom. The sterling-to-US dollar rate slightly improved to 1.3147 getting some support from the recent reports that Brexit terms could be agreed next week.
Demand for US Treasuries soared amid the expected further increase of the interest rate this December as well as in 2019 driven by a positive economic state in the country.
As for the euro, the negative impact keeps coming from the still unsettled budget issue, as the Italian and EU representatives are yet to come to terms regarding the Italian budget for the next three years. In particular, the proposed draft budget conflicts with the EU requirements due to excessive deficit level and heavy debt burden. In this situation, Italian state bonds yield went up, as the players fear that higher state debt would shake the economic stability.