US 10-year Treasury yields continue to rise back to a 16-year high of 5.0%. Global financial markets have been hit by a rise in US bond yields, which helped push the USD Index to its highest in nearly a year earlier this month.
However, Shaun Osborne, Chief FX Strategist at Scotiabank in Toronto, Canada, said: "This increase is an opportunity to weaken the strength of the USD against certain currencies."
Investors' attention has now turned to US third quarter GDP data to be released today, October 26, and the Personal Expenditure Price Index (PCE) released on Friday (October 27). These data could affect the Fed's interest rate outlook.
Higher interest rates increase the opportunity cost of holding non-yielding assets like gold. According to CME FedWatch, markets are expecting the Fed to leave interest rates unchanged at its policy meeting next month.
However, Shaun Osborne, Chief FX Strategist at Scotiabank in Toronto, Canada, said: "This increase is an opportunity to weaken the strength of the USD against certain currencies."
Investors' attention has now turned to US third quarter GDP data to be released today, October 26, and the Personal Expenditure Price Index (PCE) released on Friday (October 27). These data could affect the Fed's interest rate outlook.
Higher interest rates increase the opportunity cost of holding non-yielding assets like gold. According to CME FedWatch, markets are expecting the Fed to leave interest rates unchanged at its policy meeting next month.
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