Dollar Rises on Relative Yield Strength and Economic Optimism

Global financial markets are trading with a risk-on sentiment today, starting from the Asian session and continuing through the European and early US sessions. However, gains in stocks have been relatively limited, partly constrained by recovery in benchmark treasury yields, and partly capped by low trading activity. In the currency markets, positions have shifted somewhat […]

Dollar falls broadly in early US session following the release of CPI data that shows disinflation resumed in April. This has reignited hopes that Fed is on track to start cutting interest rates by September, with Fed fund futures now indicating more than 70% probability of such a move. The renewed optimism has also boosted […]

Euro rises broadly today, lifted by significant improvement in economic sentiment indicators from Germany and the broader Eurozone. Despite these positive signals, current situation assessment remains subdued. While the worst may be over for Germany’s economy, in particular the manufacturing sector, recovery is still in its nascent stages and further nurturing is required. The uptick […]