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US dollar sentiment weakens as fiscal worries outweigh yield support
ABN AMRO says an expanded US Treasury buyback program has not eased investor focus on US debt dynamics and fiscal risks.
ABN AMRO strategist Georgette Boele said sentiment toward the US dollar is deteriorating, arguing that fiscal concerns and rising risk premia are outweighing support from higher US Treasury yields.
According to FXStreet, Boele noted that the Treasury’s expanded buyback program has failed to reassure investors, who are instead still focused on US debt dynamics and broader fiscal risks.
In FX trading, GBP/USD fell back below 1.3600 after briefly turning higher, while EUR/USD accelerated its losses and retreated to around 1.1650.
FXStreet also pointed to pressure on gold from the stronger dollar and a rebound in Treasury yields, and it cited a mixed risk backdrop as markets await major scheduled events later in the week.
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