Forex
Dollar Fights Back Amid Falling Yields
The US dollar regained some strength on Monday as yields dropped in America.
The euro and pound initially gained against the dollar, but selling pressure returned, leading to a continuation of choppy and volatile behavior. The EUR/USD is currently trading at 1.13866, while the GBP/USD is at 1.33125.
Despite falling yields in America, the interest rate differential between the US dollar and Japanese yen remains wide, boosting the carry trade. This has led to a breakout above massive swing highs going back to the 1980s for the USD/JPY pair.