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Dollar Slips as Treasuries Steady; Markets Await Economic Data

2 months ago

The US dollar saw a decline against a basket of Group-of-10 currencies, while the yen remained relatively stable around the 150 per dollar mark. Treasuries exhibited steadiness in Asian trading following a sell-off on Wednesday, which pushed the 10-year yield up by five basis points.

This surge in yields across the curve followed a $16 billion sale of 20-year bonds and the release of Federal Reserve meeting minutes, which underscored caution regarding potential rate cuts. Richmond Fed chief Thomas Barkin pointed out persistent pricing pressures in sectors such as housing, despite a decrease in headline inflation. Fed Governor Michelle Bowman also expressed resistance to the idea of imminent rate cuts.

Later on Thursday, investors are anticipating the release of key economic data, including Eurozone inflation figures and Purchasing Managers’ Index (PMI) data, alongside US initial jobless claims and home sales data.

West Texas Intermediate (WTI) crude oil extended gains on Wednesday, climbing above the $78 per barrel mark by adding to a 1.1% increase. This rise was supported by tightening physical supplies in the market. Additionally, the price of gold surged above the $2,029 per ounce level, reflecting heightened investor interest in safe-haven assets amidst market uncertainties.

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