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Dollar gains on higher Treasury yields and steady inflation data

The U.S. five-year Treasury auction cleared at a 4.393% yield, reinforcing the bid for the greenback as markets weighed persistent inflation.

Reported · Written up by our desk · Major Pairs

Forexlive reports the U.S. dollar moved mostly higher as investors leaned on rising Treasury yields. The same backdrop was linked to gold falling, with the dollar also receiving support from the interest rate outlook implied by the latest data.

The session’s macro read showed steady growth but persistent inflation, according to Forexlive. July core PCE matched expectations at 0.2% month-over-month and 3.3% year-over-year, while headline inflation came in slightly hotter than forecast, with personal income and spending also beating expectations.

Forexlive also pointed to a stronger-than-expected July durable goods print, with orders rising 1.1%. Second-quarter GDP was unrevised at 1.5%, while core and other inflation measures were revised upward.

On rates, the Treasury sold $70 billion of five-year notes at a high yield of 4.393%, according to Forexlive. The auction results were described as only modestly above the when-issued level, but it was still said to be above average overall, including strong direct bidder participation.

Latest closeGold $4,666.20 ▲0.6%

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