US TREASURY YIELDS FACTOR COULD POTENTIALLY INCREASES THE U.S DOLLAR VALUE

02.03.2021
Market News

JP Morgan analysts predict the value of the US Dollar is likely to continue to rise in line with rising demand for U.S. Treasury Yields bonds last month.

The report released by the giant company signals that the US Dollar will react positively after the increase in US treasury bonds.

They also mentioned that the FOREX market (foreign exchange) will also be affected especially if monetary policy changes occur from time to time. Good economic growth after going through the recovery phase will definitely lead to a resurgence in current interest rate levels.

The Federal Reserve decided to lower interest rates to its lowest level last year following the Covid-19 pandemic which stifled economic growth significantly. Some currency traders expect a further increase in interest rates to occur in early 2023, and are expected to continue to rise by 2024.

Such an expectation would certainly lead to interest in bonds issued by the Federal Reserve as well as raise the U.S. Treasury Yields graph. Based on the US Dollar Index (DXY) movement recorded a positive increase today, opened at the level of 90,000 and is now at the level of 90.900.