Dollar Under Pressure as Bond Yields Continue to Rise

The US dollar has been under pressure due to concerns over rising bond yields and Treasury intervention. The increased purchases of longer-dated Treasuries by the US Treasury have failed to produce a lasting decline in borrowing costs, but have instead reinforced concerns about policy credibility.

The flight to quality continues, with investors favoring currencies backed by stronger fiscal positions. The Norwegian krone, Canadian dollar, Swiss franc, and euro have held up reasonably well, while the US dollar and Japanese yen have struggled.

For EUR/USD, the technical trend is bullish after breaking above the previous bearish trend and upside follow-through. However, a sustained break below 1.1575 would undermine the current bullish structure and suggest that the recent breakout may have been false.