Dollar Gauge Retreats as Treasuries Extend Losses
The greenback gave back some of its recent gains while US yields extended their run higher as the US election remains in market’s focus.
The Bloomberg Dollar Spot Index slips 0.2% before halving losses, after rallying 0.4% on Monday; short-term punters seen locking in profits in euro and pound shorts, a Europe-based trader says.
Demand for low-delta exposure into the Fed’s next meeting begins to emerge on view that the central bank could keep rates steady while US election risk weighting may increase, another trader in the region says.
The US 10-year yield is up as much as two basis points to around 4.22%, a near three-month high.
AUD/USD rises 0.5% to 0.6693, NZD/USD up 0.5% to 0.6060
EUR/USD halves a 0.2% advance to trade at 1.0827; demand around 1.08 strikes gets bigger by the day as stop losses and stop entries lurk below.
GBP/USD erases gains to trade little changed at 1.2991; BOE Governor Andrew Bailey is due to speak alongside fellow rate-setters Megan Greene and Sarah Breeden.
Source: Bloomberg
