U.S. Dollar Rises On Higher Treasury Yields
Strong U.S. treasury yields underpinned the U.S. dollar in the
Asian session on Friday, as strong GDP data and President Joe
Biden's spending plan backed hopes for a faster economic
The benchmark yield on 10-year note rose 1.64 percent. Yields
move inversely to bond prices.
Overnight data showed that U.S. economic growth accelerated in
the first quarter, reflecting increases in consumer spending,
federal government spending, residential fixed investment, and
state and local government spending.
The weekly jobless claims dropped to a new pandemic-era low in
the week ended April 24 and pending home sales rose in March,
signalling that the recovery is gathering pace.
Asian markets fell after data showed China's factory activity
expanded at a slower pace than forecast in April.
Geopolitical tensions between Beijing and Washington and
concerns about China's crackdown on tech companies further dampened
The greenback recovered to 1.2112 against the euro and 1.3933
against the pound, from its early lows of 1.2127 and 1.3958,
respectively. The greenback is seen finding resistance around 1.18
against the euro and 1.365 against the pound.
The greenback bounced off to 0.9092 against the franc, off its
prior low of 0.9081. Next key resistance for the greenback is
likely seen around the 0.93 level.
The greenback advanced to 1.2286 against the loonie, after
falling to 1.2268, which was its lowest level since February 2018.
If the greenback continues its rise, 1.25 is possibly seen as its
next resistance level.
The greenback rebounded slightly to 0.7768 against the aussie
and 0.7240 against the kiwi, from its prior lows of 0.7784 and
0.7254, respectively. The greenback is likely to find resistance
around 0.75 against the aussie and 0.70 against the kiwi.
In contrast, the greenback edged down to 108.71 against the yen
from yesterday's close of 108.92. The greenback may target support
around the 107 area.
Looking ahead, Eurozone CPI for April and GDP data for the first
quarter are scheduled for release in the European session.
Canada GDP data for February, U.S. personal income and spending
data for March and University of Michigan's final consumer
sentiment index for April will be featured in the New York