The US dollar found a bid on Thursday, October 22, and US 10-year yields closed at a multi-month high on the fiscal stimulus news. McConnell Pelosi says stimulus agreement was “just about there.”
Financial markets found a bid overnight, along with the yields. The 10-year yield closed at 0.87%, the highest level since early June 2020. In early October, 10-year yields made a low at 0.68, and ever since, it has been bouncing back strongly and closed at the highest level. Besides, short-term rates remain shallow, with 2-year yields closed at 0.16%. The latest rising yield signals that the Federal Government seems to closer to seal the Fiscal stimulus package.
The dollar edged up against the Yen, with the yields getting stronger. However, the euro and the pound traded down against the dollar on Thursday. In general, rising bond yields support the euro and the pound. The greenback is managed to hold the parallel support find at 92.40 and trading at 93 on Friday Asia session. Among the USD crosses, USDSGD traced out a double bottom pattern at 1.3520. Below here, solid support exists at 1.3440. Overall, thick congestion between 1.3520-1.3440. And also, USDMXN managed to hold the parallel support at 20.80.
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