U.S. Dollar Index Surges as Treasury Yields Reach New Highs
The U.S. Dollar Index has gained ground as traders focus on rising Treasury yields. The yield of 2-year Treasuries settled above 4.73%, while the yield of 10-year Treasuries tested the psychologically important 5% level.
This movement has significant implications for various currency pairs, including EUR/USD, GBP/USD, USD/CAD, and USD/JPY. The U.S. Dollar Index is currently facing resistance in the 100.50-100.65 range, with a next potential target at 101.50-101.65.
In contrast, EUR/USD has pulled back ahead of the weekend, following recent Fed decisions and Warsh's comments. Traders are watching the FedWatch Tool, which indicates a 57.6% probability that the Fed will raise rates in October.
GBP/USD has gained ground as UK Retail Sales exceeded analyst estimates, rebounding from previous losses. If GBP/USD moves above 1.3400-1.3415 resistance, it could target 1.3470-1.3485.