The US dollar gained versus its major counterpart currencies on Thursday overnight trading session as investors are closely watching out for auction of 30-year US treasury bonds and direction of monetary policy to be disclosed by Bank of England.
The investors and traders are hoping for increase in US treasury yields. Further the pair USD/JPY is the most reactive to movement of US Treasury yields as Japan government owns substantial holdings in American debt. Investors keep a very close watch on US bond auction as higher Treasury yields happen to be very favorable for the greenback.
The US dollar remained under selling pressure on Wednesday’s trading session as the US Treasury yields declined after overwhelming bond auction in reaction to remarks of US Federal Reserve’s chairman Ben Bernanke.
The dollar index DXY which measure’s the US dollar’s performance versus its six major rival currencies gained to 77.861 as compared to 77.661 on Wednesday.
The Euro plunged to 1.3672 versus the US dollar in Asian trading session on Thursday as compared to 1.3721 on late Wednesday. The British Pound also declined to 1.6070 against the greenback as compared to 1.6099 on Wednesday’s North American trading session.
The Pound Sterling has been moving on solid ground since last week as the Bank of England announced its decision to keep its lending rate unchanged at 0.5 percent in the last week.
Currency strategist from Barclays Capital commented, “We continue to believe that the BoE will resist raising rates until later this year and expect the first rate hike in Q4 11.”
The US dollar surged versus the Japanese Yen to 82.66 in Asian session as compared to 82.42 on Wednesday’s late trading session.
About the Author
Daily forex trading news written by Rehan from DailyForexTrade.com
