The yield on 10-year Treasuries stood near its lowest in four months on Monday and nearly 12 basis points below the level at which the Fed raised rates by 75 basis points last week.
“As US rates struggle to recover to levels prior to last week’s Fed meeting, the dollar started the week similar to how it traded at the end of last week,” said Simon Harvey of Monex Europe. “Namely, The dollar is exposed to currencies with cheap valuations.
The dollar fell to its lowest level against its Japanese counterpart since mid-June, below 132 yen, down more than 5% from a peak of nearly 140 yen hit last month, a level that not seen since late 1998.
The contraction of factory activity in China in July, due to the appearance of new virus outbreaks that affected demand, and the biggest year-on-year drop in retail sales in Germany since 1994, made sentiment decidedly cautious in trading. From london.
The dollar index, which compares the greenback with a basket of six leading currencies, fell 0.6% to 105.30 units, its lowest level since early July., as traders trimmed their long dollar positions, according to the latest weekly positioning data. The euro benefited from general weakness in the US currency and gained 0.3% to $1.0253, continuing to consolidate.
Source: Ambito
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