The US Dollar (USD) gives back a majority of its early gains as the United States (US) Treasury Yields correct sharply due to growing optimism that the United States (US) and Iran will reach a deal soon.
At the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, turns upside down to near 99.10 after failing to extend the recovery move above 99.35. 10-year US Treasury Yields surrender their entire early recovery move and flatten around 4.58%
US Treasury yields corrected sharply on Wednesday after oil prices responded negatively to growing optimism towards the US-Iran prolonged peace deal. US-Iran peace hopes fuelled after President Donald Trump said that Washington is in the “final stages” of finalizing a deal with Iran. US bond yields rallied in the past two weeks as traders became confident that the Federal Reserve (Fed) will not cut interest rates this year due to elevated oil prices.
On the economic front, investors await the preliminary US S&P Global Purchasing Managers’ Index (PMI) data for May, which will be published at 13:45 GMT. US Dollar Index technical analysis The Dollar Index Spot trades lower at around 99.10. However, the near-term tone is constructive, with price holding above the 20-day exponential moving average (EMA) at 98.75.