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Dollar strengthens and EUR/USD breaks below 1.13 at start of Q4

The US 10-year Treasury yield was around 5.34% as global sovereign bonds kept selling off and EUR/USD fell under 1.13.

Reported · Written up by our desk · Major Pairs

Q4 opened with global sovereign bonds extending their selloff, the US 10-year Treasury yield rising to around 5.34%, the US dollar advancing after a sixth consecutive quarterly gain, and EUR/USD breaking below 1.13, Action Forex reported.

The outlet said softer August PCE inflation had already reduced conviction in another Fed hike in October, but the long end of the curve did not rally, leaving the 10-year yield as a key real time signal for the dollar.

Action Forex also pointed to renewed fuel supply stress, with Brent back above USD 100, as keeping the inflation and yield link active.

It added that the first tests of whether the prior quarter’s regime continues are the US ISM Manufacturing report and Friday’s NFP.

Latest closeBrent $98.07 ▼4.4%|EUR/USD 1.133 ▼0.3%

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