This is the cause of the USD reviving! - Kakiforex | Forex markets for the smart money. This is the cause of the USD reviving! This is the cause of the USD reviving!

February 26, 2021

This is the cause of the USD reviving!

 The greenback dollar rose again from a seven-week low after 10-year treasury yields jumped 1.6% due to weaker-than-expected offers in US bond auctions.


The increase in long-term bond yields has shown an increase since the beginning of the year, indicating growing market confidence in the economic recovery.


The 7-year bond, valued at $ 62 billion at 1.19% compared to the 1.14% auctioned in the New York session, pushed the 10-year bond yield jump to 1.6%, the last level seen before the outbreak hit the US.


The dollar index, which measures the strength of the greenback dollar against six other major currencies, rose 0.15% with strong trading at 90.36 during the opening of today's Asian session



The rise in the US dollar caused commodity-linked currencies, particularly the Aussie, kiwi and Canadian dollars, to fall back from its latest three-year high on Thursday.


The pound also depreciated, but remained stable as it was supported by market optimism for a convincing UK economic recovery following the implementation of an extensive vaccination program.


Meanwhile, the euro, which had previously shown higher gains, fell again below the price level of 1.22000.


The data, released on Thursday, saw preliminary estimates in the US economy recording slower-than-expected growth in the last quarter of 2020.


While the US unemployment claim was seen declining last week, compared to the reading recorded the previous week.