U.S. Dollar Advances Amid Rising Treasury Yields
13 May 2022 - 9:33PM
RTTF2
The U.S. dollar climbed against its major counterparts in the
European session on Friday, along with treasury yields, as Federal
Reserve Chair Jerome Powell supported the likelihood of 50 basis
point rate hikes at the next two meetings.
In an interview with Marketplace on Thursday, Powell reiterated
that the central bank is considering to raise interest rates by a
half point at the coming meetings in June and July.
"If the economy performs about as expected, it would be
appropriate for there to be additional 50-basis point increases at
the next two meetings," Powell said.
Powell added that the Fed's main priority is to get inflation
back down to 2 percent and pledged to do more if factors come in
worse than expected.
U.S. treasury yields rose, with the benchmark 10-year yield
touching 2.92 percent.
Data from the Labor Department showed that U.S. import prices
were unexpectedly unchanged in the month of April after a sharp
increase in the previous month.
The Labor Department said import prices came in flat in April
after surging by an upwardly revised 2.9 percent in March.
The greenback firmed to 1.2155 against the pound, its highest
level since May 2020. It touched 1.0349 against the euro for the
first time since January 2017. The greenback may challenge
resistance around 1.20 against the pound and 1.01 against the
euro.
The greenback rose to 1.0047 against the franc and 129.45
against the yen, from its previous lows of 0.9992 and 128.25,
respectively. The next likely resistance for the greenback is seen
around 1.02 against the franc and 132.5 against the yen.
In contrast, the greenback slipped against the aussie and the
kiwi and was trading at 0.6923 and 0.6266, respectively. On the
downside, support is seen near 0.72 against the aussie and 0.64
against the kiwi.
The greenback was down against the loonie, at a 2-day low of
1.2924. Next key support for the greenback is likely seen around
the 1.25 level.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Apr 2024 to May 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From May 2023 to May 2024