⚖️🔻 Dollar Dragged Lower By Yield Differentials: Cable FX Macro
- Rosbel Durán
- Aug 31, 2023
- 1 min read
We're looking at our own dollar and rate differential indexes. The USD Spreads Index is measuring dollar front-end yields vs G10 peers, the measure was seen turning lower on Tuesday session while the dollar remained relatively bid
The selloff came after July job openings and consumer confidence missed estimates, the former showed 8.827 million positions on the month
Data releases were followed by a drop of more than 10 basis points in the 2-year yield to slip below 5.0%. The Cable FX Macro USD Spreads index finished the day 15.0bps lower, it marked the worst decline since early May
Dollar price action has been following rate differentials closely, the drop in yields has been tracked by heavy USD/G10FX trading
Thursday session sees the greenback pare losses, last up 0.6% on the day as the euro leads declines
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