Image

US greenback comes below recent stress as Treasury yields proceed to fall

The mood in equities is worsening but it’s not helping the US dollar.

The market is increasingly concerned that the US administration is shooting itself in the foot with a poor set of tariff policies that will chase money out of the country. Increasingly, market participants are looking for shelter in bonds and that has 10-year yields down 11 bps to 4.14% today.

The message here is is that if Trump goes wild on tariffs, the range breaks and we have a head-and-shoulders targeting 3.5%.

That’s the kind of thing that would cause some major pain in the US dollar, particularly against the yen.

SHARE THIS POST