Dollar bullish trend remains intact
The broad US dollar rally was halted yesterday, and the currency remains under a mild pressure on Tuesday. US 10-year Treasury yields hit one-week low of 3.05% today, down almost 8 basis points from the 7-year high of 3.128% reached last week.
The correction both in yields and the greenback looks logical from the technical point of view, as the buck is overbought at fresh 2018 highs. Nevertheless, the impetus within the ongoing retreat looks limited and doesn’t derail the overall that started in mid-April.
The EURUSD pair has jumped above the 1.18 threshold, but lacks the impulse to regain further ground. However, should the single currency break above the local resistance of 1.1850, the immediate pressure will ease somehow in the short term. The overall picture remains negative, with the dollar remains intact.
The upcoming Fed meeting minutes due on Wednesday could become a fresh catalyst for USD bulls, should monetary authorities send hawkish signals to the markets.