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InstaForex

June 22, 2021

The Swaying Of The USD Gives Room For Major Currencies To Breathe

 The US dollar eased gains last week by trading slightly lower against a group of major currencies during the European session.


The dollar index, which measures the strength of the greenback dollar against six other major currencies, traded around 92.10.


The Federal Reserve’s (Fed) hawkish statements have previously pushed up U.S. dollar trading since last week and weighed on sentiment against risky currencies since last week, including the stock market.


However, due to the sharp decline in US bond yields, the strengthening of the greenback dollar has been somewhat limited.



The benchmark U.S. 10 -year and 30 -year bond yields fell sharply in the previous Asian session, touching four -month lows, where 30 -year yields fell below 2% for the first time since February.


The decline has provided an opportunity for most major currencies to rise, particularly the Japanese yen which is sensitive to declining US bond yields.


The yen and the euro traded 0.2% higher against the USD in the European session, respectively.


Meanwhile, the pound rose slightly to around 1.38470 against the greenback, after hitting a nearly two -month low at the start of the previous Asian session.


However, the depreciation of the US dollar was seen as insignificant and still put the giant currency higher around its nearly two -month high than its main competitor.