USD receives support from profitability growth of the US government bonds

With the opening of US session trading, the US dollar received appreciable support after a restrained correction from the start of the day. The reason for the growth of the US dollar across the whole spectrum of the market was the unexpected increase of US government bonds profitability.

10-year-old US government bonds chart. Current price – 2.850

The reason for such a rapid growth of bonds was the weak statistics on the US and the technical factors of the movement. So, government bonds were limited to the support level of 2,800, from which the retaliation occurred. At the same time, this movement can be called escape from risks due to low risks and growing fears in the market.

Despite appreciable support, the dollar index against the basket of major currencies is limited by yesterday’s highs at around 90.20, breaking through which will open the way to resistance level 90.40-50, indicating a change in the monthly downtrend for the US dollar.

US dollar index Graph. The current price is 90.10.

Hanzenko Anton