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Rising Treasury yields supporting dollar, softer Brexit driving sterling
US bond yields continue to climb and with yield differentials a key factor once more driving forex markets, this is helping to underpin dollar strength. This is showing with the support for Dollar/Yen and the weakness on EUR/USD. However, another factor playing into the minds of euro traders has been the political risk created by the populist and inexperienced Italian coalition governing which is forming. Suggestions that draft coalition agreement between the 5-Star Movement and the anti-immigration League included the prospect of asking the ECB for €250bn of debt forgiveness is leaving traders a little nervous, ... (full story)