XE Market Analysis: US 10-Year Bond Yields Approach 3% as the US Dollar Bounces

OVERVIEW FX market this week awaits the much anticipated Q1 GDP data from both the US and the UK. GBP remains under pressure but with weakness in the currency, this has made the interest rate decision for the BoE even harder. USD is enjoying a bounce helped by the rise of the 10-year yield. HIGHLIGHT The yield from the 10-year Treasury bond is notching at the psychological 3% mark. US DOLLAR The US Dollar continues to rise, and the highlight of this week will be on the Q1 GDP data. BRITISH POUND The Pound continues to trade under pressure as GBP/USD drops below the psychological 1.40 level, and with the outlook for an interest rate hike at 50/50, this volatility is set to continue. EURO The Euro composite PMI held steady in April at the 14-month low seen in March at 55.2, which was marginally better than expectations. CANADIAN DOLLAR The Canadian Dollar remains on the back foot helped by comments by the Bank of Canada chief that he was comfortable with inflation remaining above 2% throughout 2018. AUSTRALIAN DOLLAR The Australian Dollar dropped 1.3% last week, its biggest weekly fall since mid-March as the market awaits the Australian CPI. FEATURED CURRENCY The Japanese Yen weakened to its lowest level in two months against the US Dollar as Bank of Japan's Governor Kuroda confirmed that Japan is going to stick with their very accommodative policy. Read more