The US dollar isn’t benefitting from rising Treasury yields today as flows dominate

The US dollar continues to slide against European currencies today, led by GBP, EUR and CHF.

That has all the hallmarks of a year-end flow-driven trade.

On the fundamental side, US 10-year yields are up 5 bnps today to 1.53%. A rise above 1.537% would be the highest in a month.

European rates are also rising with bunds up 4.7 bps today and gilts up 7 bps.

EUR/USD is 70 pips from the session lows and there’s an outside candle building but it’s all still within the December range. I wouldn’t try to read too much into market moves at this time of year. Watch carefully around the London fix.

EURUSD daily

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