The Euro edged higher versus the greenback as bond market fluctuations effectively undermined the US Dollar; that move came as a surprise to analysts who, collectively, had expected the recent uptick in long-term overnight Treasury bond yields to provide a lift to the greenback. One strategist from Holland explain that the fall in the Dollar might be attributed to a stronger rise in yields on German sovereign debt than that of its US counterpart and that a readjustment in positioning is likely ahead in the coming weeks.
As reported at 9:13 am (BST) in London, the EUR/USD was trading at $1.1269, a gain of 1.0% and only a few pips from the session peak of $1.1277. The situation in Greece, however, continues to weigh on the Euro despite Greece’s interest payment to the IMF earlier. The US Dollar index, the gauge used by FX traders to assess the greenback’s relative health, was trading at 94.2860 .DXY, a loss of 0.76%.
Aussie and Kiwi Boosted
The fluctuations in the global bond markets did help both the New Zealand and Australian Dollars as sovereign debt from their respective countries continues to be at a significant premium to US Treasuries. The AUD/USD edged up 1.09% to trade at $0.7982 while the NZD/USD traded at $0.7390, a gain of 0.63%.