The US dollar has strengthened as risk-aversion driven by ongoing trade tensions promotes demand for safe-haven currencies. Although President Trump has postponed tariffs on Canada and Mexico, uncertainties linger. China's retaliatory tariffs on US products have contributed to market volatility, giving the dollar a bullish outlook. Positive economic indicators and Federal Reserve comments signal a potential hawkish stance, while concerns over inflation persist. US treasury yields have risen, but prolonged trade tensions may push them lower. Investors are awaiting significant economic releases that could shape future Fed policy.
The US Dollar traded higher, as ongoing trade tensions continued to fuel risk-aversion, boosting safe-haven assets such as the US currency.
Recent economic data and comments from Federal Reserve officials have further strengthened the dollar, raising the likelihood of the Fed maintaining a hawkish stance.
In the bond market, the US treasury yields rose across all maturities with the 10-year note holding above 4.55%.
However, should trade tensions persist, yields could face downward pressure if investors move to the bond market en masse.
Collection
[
|
...
]