Dollar gained ground in European trade on Tuesday against a basket of major rivals, maintaining gains for a second day and approaching five-week highs on renewed demand.
Dollar was boosted by a recent surge in US 10-year treasury yields, as markets now are less convinced of an early Fed interest rate cut in March.
The Index
The dollar index rose by over 0.1% to 103.47, with a session-low at 102.98, after closing up 0.15% yesterday, resuming gains and backing off five-week highs at 103.69.
US Yields
US 10-year treasury yields rose by 0.75 basis points on Tuesday, resuming gains after a two-day hiatus and hitting a five-week high at 4.196%, underpinning the greenback.
Markets are now convinced that the Federal Reserve will maintain high interest rates for most of this year.
US Rates
Current pricing for a US interest rate cut at the Fed March meeting stood at just 43.5% currently, while pricing for such a cut at the May meeting stood at 84.5%.
Now traders await crucial US data later this week, on GDP growth and consume spending and others.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
