The dollar rises across the board, the Dow Jones drops more than 1%, and US yields plummet.
The EUR/USD pair makes new daily lows while remaining above 1.1800.
The EUR/USD pair fell to a new two-day low of 1.1815 before recovering marginally. It has so far been unable to move away from the 1.1830 level, and it continues under pressure as the US dollar strengthens.
Despite lower US yields, the dollar surged substantially against most currencies in the previous few hours, despite a drop in stock prices on Wall Street. The Japanese yen has been the best performer, boosted by risk aversion and the bond market’s movement.
Bonds are gaining strongly on the first regular day of the week, following the US vacation yesterday. The yield on the 10-year Treasury note fell to 1.35 percent, its lowest level since February. The Dow Jones Industrial Average is down nearly 1%. The greenback is hanging onto most of its gains despite lower yields and weaker-than-expected US statistics.
The EUR/USD continues to trade with a bearish tendency. The 1.1800 support would be exposed if the price fell below 1.1820. The next level is 1.1760, which is below the current level. If the market closes at current levels, it will be the lowest since early April. The pressure would be relieved if the price rose above 1.1860./n
