ING’s Chris Turner highlights that rising US Treasury yields and a bearish yield curve steepening are pressuring the Federal Reserve (Fed) to sound more hawkish, even without immediate hikes. He notes high Oil prices and higher yields are negative for risk assets but supportive for the Dollar.
Deutsche Bank analysts highlight that the Dollar Index (DXY) strengthened as United States (US) yields moved higher and data remained resilient. Retail sales matched expectations, and the Atlanta Fed’s GDPNow estimate for Q2 was revised up, underscoring solid economic momentum.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending its gains for the second successive day, trading around 98.40 during the European hours on Wednesday.