Tag Archives: Bank of Canada

In Brief: What the US Dollar is Up To

The dollar jumped against a slew of currencies that measure its broader strength earlier this month.  A four month peak was reached against the yen on the back of the numbers at the beginning of the month’s 25 basis-point rise in 10 year US government bond yields.  According to co-head of Millennium Global, Richard Benson: “The real story at the moment is the rise in U.S. real yields.  That does look like being the theme for the moment. Dollar yen is properly supported, and I don’t think there is even that much participation yet (in that trade).”

It has also been speculated that the US dollar could advance against the pound, following the Fed’s Labour Market Conditions Report, expecting to indicate an enhancement of market conditions that may spark some appreciation in the US dollar.

Other impacts on markets at the moment are central bank events, with anticipated raised interest rates imposed from the Bank of Canada and data indicates the economy in Britain looks gloomy suggesting an interest rate hike there later this year.