US Dollar Rallies on Rising Treasury Yields
The US Dollar Index (DXY) has continued its rally, hitting new highs as traders react to rising Treasury yields. The 10-year yield climbed above 5.15%, while the 30-year yield settled above 5.45%. This shift in bond markets is driving the dollar higher.
The Initial Jobless Claims report showed that 197,000 Americans filed for unemployment benefits last week, beating analyst forecasts of 201,000. Traders are also focusing on the sell-off in U.S. bond markets.
The nearest resistance level for the DXY is around 101.50-101.65. If it manages to settle above this level, it will target 102.35-102.50.
The EUR/USD has pulled back despite a better-than-expected Ifo Business Climate report from Germany. Traders are mostly focused on the dynamics of bond markets.