U.S. Dollar Weakens Amid Falling Treasury Yields
09 November 2021 - 3:12PM
RTTF2
The U.S. dollar came under pressure in the Asian session on
Tuesday amid falling treasury yields, as investors awaited a
decision from President Joe Biden regarding his choice for the top
post at the Federal Reserve.
The benchmark yield on the 10-year note fell 1.49 percent.
Yields move inversely to bond prices.
Treasuries gained following news that Fed Governor Lael Brainard
was interviewed for the post at the White House last week.
Chairman Jerome Powell and Brainard are the most preferred
candidates for the Fed leadership and Biden has said that he would
make a decision in the coming days.
Brainard is perceived as more dovish and market participants
hope that the Fed would be more slow in the tightening of policy
following her potential appointment.
Investors focus on U.S. producer inflation, as well as speeches
from central bank chiefs, including ECB President Lagarde, BoE
President Bailey and Fed Chairman Powell due later in the day.
The greenback hit 5-day lows of 1.3582 against the pound and
1.1607 against the euro, down from its prior highs of 1.3548 and
1.1577, respectively. The next possible support for the greenback
is seen around 1.37 against the pound and 1.18 against the euro
The greenback fell to a 5-day low of 1.2429 against the loonie
and a fresh 4-week low of 112.73 against the yen, off its previous
highs of 1.2459 and 113.29, respectively. The greenback is likely
to find support around 1.23 against the loonie and 110.00 against
the yen.
The greenback edged down to 0.7429 against the aussie and 0.7174
against the kiwi, after rising to 0.7390 and 0.7148, respectively
in early trades. The greenback is seen facing support around 0.76
against the aussie and 0.74 against the kiwi.
The greenback declined to 0.9117 against the franc, reversing
from an early high of 0.9140. The greenback may face support around
the 0.90 region, if it falls again.
Looking ahead, German ZEW economic sentiment for November is due
out in the European session.
European Central Bank President Christine Lagarde is due to
deliver opening remarks at the ECB Forum on Banking Supervision at
8 am ET.
U.S. PPI for October is scheduled for release in the New York
session.
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