US Dollar flat while US markets are in light trading mode with President Carter's funeral
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades flat above 109.00 on Thursday while bond markets are easing down after an already volatile week. Yields surged across the globe after traders started to worry about all the plans President-elect Donald Trump wants to implement, e most of them perceived as highly inflationary. This has triggered widening rate differentials between the US and other countries
The mentioned surges in yields triggered a brief mini-crisis in UK Gilts. This week, long-term UK borrowing costs have soared substantially and the British Pound (GBP) has fallen. Markets perceive this as a sign that investors have lost faith in the government’s ability to manage the national debt and control inflation, while the British government is soothing by communicating it will stick to its fiscal rules even if borrowing costs will hit their higest level since the financial crisis, the FT reports.
Source: FXstreet
