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Dollar climbs as oil holds above $100 and yields rise

The euro slid to the bottom of the currency table after renewed stress in French government debt lifted European yields faster than US Treasuries.

Reported · Written up by our desk · Major Pairs

The dollar rose against all seven major peers ahead of the Federal Reserve’s minutes, with the DXY at 102.401, up 0.55% at the time of writing, according to Action Forex.

Oil stayed above $100 while long end bond yields climbed across major markets, a combination Action Forex said is weighing on other risk assets like equities and metals.

The outlet linked the euro’s underperformance to renewed stress in French government debt, which pushed French yields higher faster than US Treasuries and added a separate sovereign risk premium that hit the euro disproportionately.

Heading into the Fed minutes, Action Forex characterized the move as driven by overlapping factors, including energy prices, rising long end yields, and French fiscal stress pressuring the single currency.

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