Wednesday 31 January 2018

As the yield of Bond softens, the profit of US Dollar has declined

LONDON (Jan 30): 
The previous profits declined as compared to the US dollar and on Tuesday fell by 1 percent, while the US's yields pulled back from recent heights, while after the economic data the euro got stronger, confirmed that the euro zone's economy Growing on healthy clips.

Since July 2017, it has been set for its biggest monthly decline, because strong global growth - especially in Europe - and slow inflation encouraged investors to add slump bets.

The increase in the yield of global bonds, the yield of 10-year US bonds is above 2.70%; Since April 2014, their highest level has given some investors some small cuts and strengthened stronger than the dollar on Monday. 

But in the face of global danger, there is panic in equity markets, reducing the yield of bonds has proved to be less.

Gregory Pedon, co-chief investment officer at the billionaire Latham of London-based private bank, said that the dollar was also being organized by the policies of US President Donald Trump, which led to a rise in the budget deficit.

There are questions on whether the Fed rate will increase and whether it will be three or four increments, but when the interest rate difference becomes wider, the layer will provide some dollar power after year. "

0.2% was lower than the dollar, which was 89.161 against the six major currencies, which fell to the lowest level since December 2014, falling from the lowest level of 88.43 last week.

Analysts say the increase in US bond yields has given some support to the dollar this week. US 10-year Treasury yield reached a peak of 2.733% in Asian business on Tuesday, 2.70% at the highest level since April 2014.

The euro increased by 0.3%, which was US $ 1.2420, but there is still a path from the highest level of US $ 1.2538 for three years last week.

The underlying feeling in the euro area is strong.

Treasury Secretary Steven MannChinn gave a major boost to American currency with a weak dollar support last week. Trump was later trying to withdraw from those comments, and was saying that he wants to finally make the dollar stronger.

Trump said on Monday that he will address his proposed immigration overhaul in his speech and address his efforts to reduce global trade barriers to US exports.

The profit of dollar also comes when the sense of risk is on the back and decline in Asian stocks and European shares have declined.

Stirling, which is highly correlated to the risk on the currency, fell below the $ 1.40 line for the first time in a week before climbing above the level.

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