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The dollar continued rising in European trading, hitting a 10-month high against the yen at 117.87 and jumping through $1.0425 per euro. The spread between 10-year US and German government bond yields widened to its largest since at least 1990.
A widening rate gap keeps capital flowing into dollar assets and supports the dollar, which pressures dollar-priced feed commodities.
reuters.comDec 15, 2016After 2,356 past bullish macro events, DXY moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
After 533 past bearish macro events, EURUSD moved a median -0.3% over 5 sessions (33% higher; middle half -1.2% to +0.2%), and -0.5% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Dollar rally through $1.0425 per euro with the US-German yield spread at a record width points to rate-differential-driven euro selling.
The dollar surged against the euro and yen on Dec 15, with the US-German yield spread at a record wide, driving the move.
