Forex
Home›Forex›Major Pairs›Dollar slips again as Treasury yield pullback outweigh…
Dollar slips again as Treasury yield pullback outweighs safe-haven demand
Action Forex links the renewed dollar slide to falling long-term US Treasury yields tied to reports the Treasury may expand bond buybacks.
The US dollar is slipping again after a corrective rebound lost momentum, according to Action Forex, with selling pressure building as long-term US Treasury yields fall. The outlet points to reports that the US Treasury is prepared to expand its bond buyback operations, a move that can support government bond markets and reduce yields, weakening the dollar’s interest-rate advantage.
Action Forex also notes that geopolitical tensions around Iran are still supporting the dollar as a safe-haven asset, but not enough to drive sustained gains. Instead, the focus in FX markets is shifting to a fresh set of US data releases, including revised second-quarter GDP, the core Personal Consumption Expenditures PCE inflation gauge, personal income and spending, and durable goods orders.
Forecasts cited by Action Forex suggest GDP growth could be revised down to 1.5% from 2.1%, while the core PCE price index is expected to rise 3.3% year over year and 0.2% month over month. That combination of slower growth and persistent inflation pressure could complicate Federal Reserve policy choices, with markets also looking for Fed officials’ comments for guidance.
On pair-level moves, Action Forex says USD/CHF has fallen back toward 0.8000 after recovering to 0.8045 last week, and could test below 0.7980 toward the recent low near 0.7950 if weakness persists. For USD/CAD, the outlet says the pair has resumed its decline after an unsuccessful push higher, with technical levels pointing toward 1.3740 to 1.3780, while a corrective recovery would likely require firming above 1.3870.