Firm USD supported by rising US yields – Scotiabank
FXStreetOct 21, 2024 11:36 AM
The US Dollar (USD) remains firm, supported by softer risk appetite and rising US Treasury yields, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
USD firmer, supported by rising yields
“Global bonds are under pressure on the day but the rise in US 10Y yields through the October peak suggests that rebound may extend a little more at least. Bloomberg notes one analyst suggesting that the 10Y could reach 5% in the next six months on worries over persistent inflation and weak US fiscal policy.
“Fiscal excess is, in my opinion, a growing risk for the USD broadly but the impact of weak fiscal policy settings may be relatively slow-moving issue for FX—and may not factor in to markets until after the US election.’
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