Finance News
By James Thorp
1 / 15
Bond Yields Drove the Dollar's Big Week. Let's back up. The dollar index — which tracks the greenback against six major currencies — had…
2 / 15
Traders Now Watch the Fed's Next Move. Currency traders aren't done worrying, though. They're basically waiting on two things right now:…
3 / 15
Economic Data Could Shift the Picture Fast. Geopolitical tensions and broader global economic signals are also in the mix. They always are.
4 / 15
The dollar dropped Monday. Not a lot, but enough to notice — the dollar index fell 0.4% after the greenback just wrapped up its strongest weekly gain since August of the prior…
5 / 15
The retreat came pretty much right as bond markets started to breathe again. For the past week or so, yields had been surging fast, rattling investors and pushing a lot of money…
6 / 15
Let's back up. The dollar index — which tracks the greenback against six major currencies — had just posted its best weekly run in over nine months.
7 / 15
But bond markets don't stay wild forever. As yields started to calm down and the worst of the turbulence seemed to pass, investors began reassessing where they wanted to be.
8 / 15
The yield surge itself was tied to expectations that central banks — the Federal Reserve chief among them — would keep raising interest rates.
9 / 15
Currency traders aren't done worrying, though. They're basically waiting on two things right now: fresh economic data and whatever signals come out of central bank communications.
10 / 15
The Federal Reserve's next steps are probably the single biggest variable here. If upcoming data — employment numbers, inflation prints — come in hotter than expected, the rate…
11 / 15
Related: STRC Preferred Stock Holders Squeezed as Bond Yields Keep Climbing
12 / 15
It's not just the dollar, either. The euro and the yen have both been moving around against the dollar, each dealing with their own domestic economic pressures.
13 / 15
Bond yields and currency strength don't move in a straight line together, but the relationship is real. When yields go up fast, the dollar tends to follow — at least initially.
14 / 15
The bond market's gradual return to calmer trading is seen as a positive sign by many traders. Calmer yields generally mean calmer everything else.
15 / 15
More context: Bitcoin Depot Collapses, Pulling 9,000 ATMs Offline Across America
The Currency Analytics
Want the full story?