Forex Today: Yields´ comeback may push the dollar to fresh highs

What you need to know on Tuesday, March 30:

Risk-off dominated Monday, leading to modest dollar gains. The greenback advanced within limited ranges against most major rivals.  Investors are cautious at the start of the week amid news that a hedge fund that had significant positions in different firms was forced to liquidate late on Friday. Credit Suisse and Nomura reported significant losses as a result of the $20 billion block-sale.

Another point of concern is US President Joe Biden’s spending plan, which may include $1 trillion in new tax hikes. Major indexes in Europe and the US were under pressure, ending the day mixed.  Meanwhile, US Treasury yields resumed their advances. The yield on the 10-year Treasury note hit 1.72%, its highest in over a week.

The EUR/USD pair set a fresh 2021 low of 1.1760, ending the day a handful of pips above the level. GBP/USD finished the day unchanged around 1.3770 after an early advance. The pound is still resilient to the dollar’s demand, partially underpinned by UK’s reopening as the coronavirus situation continues to improve.

Gold prices edged lower, undermined by rising US Treasury yields favoring the greenback. Crude oil prices advanced modestly after the Suez channel was finally freed.

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