The US dollar showed great flexibility in trading yesterday, despite the decline in the industrial Purchasing Managers Index, one of the reasons for this was the continuous rise in bond yields, especially 10-year bond yields in the United States to 4.49%, where the price is now stable around 4.44%, but still 25 basis points higher than the lowest level recorded last month.
This, in turn, maintains support for the US dollar against most currencies, especially against the Japanese yen, where the USD / JPY pair is now trading upwards to the levels of 161.60 and is looking for further gains as pressure continues on the Japanese Ministry of Finance and the Bank of Japan.
On the other hand, the focus yesterday was on the euro as the markets opened on an upward price gap after the first round of the French elections over the weekend, however, the EURUSD pair failed to gain much momentum and retreated in an attempt to close this price gap.
The focus today will be on the single currency again with the release of eurozone inflation figures for June, which will be released at 12: 00 pm Egypt time, however, this report will not do much to change the forecasts for July, but it is possible that the impact of the expected September interest rate cut will be extended, but we will have to wait for the July and August reports as well to better understand the trend.
In addition, we will have a talk with Christine Lagarde and Jerome Powell at 4:30 pm Egypt time.
