Forex
Dollar Surges to Near-1.5-Year High on Strong US Labor Market and Higher T-Note Yields
The dollar index DXY rose to a near-1.5-year high today, up +0.34%, driven by higher T-note yields and signs of strength in the US labor market.
Sovereign bond yields surged with the 10-year T-note yield hitting a 24-year high of 5.34% today, widening interest rate differentials in favor of the dollar.
The US labor market showed resilience with weekly jobless claims falling to a 10-week low and continuing unemployment claims reaching a 3.5-year low, bolstering the case for tighter monetary policy from the Federal Reserve.