US Dollar Back on Offense as Benchmark Yield Hits Nine-Year High

TALKING POINTS – YEN, EURO, NZ DOLLAR, US DOLLAR, FED, IMF, ITALY

  • Yen up, Euro and NZ Dollar down as market sentiment sours anew
  • Italian budget woes, gloomy IMF, deepening US/China row in focus
  • US Dollar gains as 10-year Treasury bond yields hit nine-year high

A sour mood looks to be prevailing across financial markets as Asia Pacific bourses hand off the baton to Europe. Most regional stocks declined after the IMF cut its global growth outlook for the first time in two years and Italy re-emerged as a worry for financial markets.

This has offered a familiar lift to the perennially anti-risk Japanese Yen while the Euro is back on the defensive. The sentiment-geared New Zealand Dollar is likewise facing selling pressure, although its Aussie counterpart has managed to hold up for now. That might reflect relative resilience in Chinese shares.

Firming Fed rate hike expectations seem to have added fuel to the risk-off drive, echoing last week’s standout theme across financial markets. The benchmark 10-year Treasury bond yields rose to a nine-year high.

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2018/10/09/US-Dollar-Back-on-Offense-as-Benchmark-Yield-Hits-Nine-Year-High.html