US Yields Rebound Slows, Dollar Weakness Looms for EUR/USD and AUD/USD
The US two-year yield has been rising sharply, reaching around 4.910% according to the TradingView daily chart. However, it seems to be calming down a little bit, which could potentially lead to some U.S. dollar weakness. The 10-year yield is also showing signs of slowing down.
The impact on currency pairs may be significant. If the two-year yield were to roll over, several currency pairs that have been favoring the US dollar could see a reversal in their fortunes. For example, EUR/USD and AUD/USD, which have been experiencing some weakness, might stage a rebound.
Copper prices are also worth watching, as they hold their 50-day EMA and maintain a broader bullish trend. A shift in the setup due to falling yields could potentially support these trends.