Soaring US Bond Yields Strengthen US Dollar
London: 2 January 2024 (TraderMade): The dollar strutted its stuff on its first day of 2024, flexing its muscles with a hefty rise fueled by spiking US bond yields.
Market participants are impatiently waiting for critical economic data -- think US jobs and European inflation numbers -- to understand the central bank's next moves.
The dollar index (USDX), that heavyweight champ of currencies, is on track for its biggest daily win since October, leaving the Euro and Sterling gasping for air in its wake. The USDX gained 0.695% to 101.7525 at about 02:47 PM GMT.
At about 02:52 PM GMT, the EURUSD pair declined by 0.74% to 1.09579, while the GBPUSD pair plummeted 0.78% to 1.26346.
Even the siren song of higher oil prices couldn't lure investors away from the greenback's allure as data anticipation and yield gains took center stage.
Buckle up because this economic thriller is just beginning, with central bank decisions hanging in the balance.
Overall
The dollar dominated the first trading session of 2024, fueled by higher yields and anticipation of crucial economic data. The Euro and Sterling struggled. Market participants will eye data releases this week for further direction in the currency market.
