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The USD is trading higher, with the greenback hitting new highs against the EUR, with GBP and CAD leading the way.
The decline in US yields has now been retraced, with yields further away from the curve rising again on the day.
- 5-year yield 4.615%, +0.2 basis point
- 10-year yield 4.572%, +1.2 basis points
- 30-year yield 4.666%, +3.2 basis points
The U.S. Treasury will offer 30-year bonds as an option at 1 p.m. ET, completing its coupon auctions for the week. Yesterday’s 10-year note auction was a disaster, with weak domestic and international demand. The auction also had a tail of 3.1 basis points from the WI level.
Rising yields cause the US dollar to move higher. The US Dollar is now trading to new session highs against the EUR, GBP and CAD, and is near daily highs against the JPY. Decreases against other currencies are also traced.
- EURUSD: EURUSD has broken below the 61.8% retracement at 1.07133 and is heading towards the 2024 low at 1.06942. A move below this level would cause traders to look towards an oscillating zone between 1.0655 and 1.0675.
- GBPUSD: GBPUSD fell below yesterday’s low at 1.25194 and February’s low at 1.2518. Not only is GBPUSD now trading at a new low for the day, but also a new low for the year (and going back to December 13). The December low price reached 1.2499 and is the next target.
- USDCAD: USDCAD trades to a new high and in doing so moves above 1.3700. The pair returned to a swing zone during the downward corrective move earlier today between 1.3654 and 1.3668. The buyer has entered and has now reached new highs. The price is also above an upper trendline after trading above and below it over the past two days. The next target area is between 1.37346 and 1.3766.
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