USD is about to lose weekly due to falling bond yields and criticism from Trump

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USD rose slightly on the European market on Friday against a basket of global currencies, rebounding from the 10-day low recorded earlier in the Asian market, but is about to make the first weekly loss in the last three weeks, Term highs in several years, after US President Donald Trump’s persistent criticism of Federal Reserve policy and raising interest rates.

USD index rose 0.1% at 11:55 GMT, trading at 94.80 points, the opening level of 94.70 points, the highest at 94.82 points and the lowest at 94.62 points, the lowest since October 1.

The index ended yesterday’s trading down 0.6%, the third daily loss in a row, and the biggest daily loss since September 20, after data below expectations for key US inflation levels in September.


Over the course of the week, the dollar index, up to 0.5%, was about to lose its first weekly loss in the past three weeks as the world’s strongest currency rallied against a basket of currencies.

The sell-off accelerated after 10-year US bond yields fell from a 7-year high and 30-year bond yields fell from their highest level in four years as risk appetite eased.

In addition to the president’s continuing criticism of the Federal Reserve policy and raising interest rates, Trump said he did not like what the Federal Reserve was doing and that the inflation target was already in place, so he did not think it was necessary to be quick to raise interest rates.

Investors are looking ahead to an important consumer confidence survey in the US this month, with the October reading of the University of Michigan Consumer Sentiment Index (CPI) forecast for October expected at 100.4 points from 100.1 points in September.

 

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