EUR/USD Eases to 1.28 on Periphery Bonds’ Slump

The dollar climbed versus a majority of its major peers with growth in the U.S. forecast to outpace Europe and Japan, and on speculation the worst slump against the yen in 15 months yesterday was overdone.

The Australian dollar and Brazilian real declined the most against the greenback after Federal Reserve Bank of St. Louis President James Bullard said U.S. economic fundamentals remain strong, sending bond yields higher. The euro fell as concern increased that a financial crisis is returning to the region’s so-called peripheral nations.

“U.S. Treasuries yields are higher, that’s a sign of overshooting earlier and we’re getting back to an orderly market,” said Masafumi Takada, a New York-based director at BNP Paribas SA. “Dollar-yen should come back up.”

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.