US Dollar Drops as US Yields Sink on Bessent Comments
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, trades weaker after comments from United States (US) Secretary of the Treasury Scott Bessent. Bessent said that US yields will drop lower even without the Federal Reserve (Fed) due to the Trump policy. This triggered a firm drop in US yields across the board, dragging Gold, Bitcoin and the US Dollar along with it in its sell-off, deepening earlier losses.
The rout was initiated in early trading on Tuesday after the US President Donald Trump administration gave more details on its plan to toughen semiconductor restrictions over China. In addition, the United States (US) is asking allied countries to impose tariffs as well on China in order to corner the country. Trump wants to slow down Chinese technological development, Bloomberg reports.
The US economic calendar is starting to bear some interesting data points. The Consumer Confidence for February and the Richmond and Dallas Fed Manufacturing indexes are all leading sentiment indicators that could give some insights about the current US activity. Later in the day, Fed Vice Chair for Supervision Michael Barr, Richmond Fed President Tom Barkin and Dallas Fed President Lorie Logan are set to speak.
Source : Fxstreet
