- German 10-year Bond yield drops to all-time lows on Tuesday.
- US Dollar Index clings to daily gains above mid-97s.
The USD/CHF pair climbed above the critical parity mark for the first time since June 3rd today but struggled to preserve its bullish momentum. As of wirting, the pair was virtually unchanged on a daily basis at 0.9990.
The heavy selling pressure surrounding the euro following European Central Bank President Draghi’s dovish remarks helped the greenback gather strength against its rivals today and lifted the pair higher. However, Draghi’s comments also weighed on the Treasury bond yields and helped safe-havens such as the CHF show resilience vs the dollar. As of writing, the 10-year German T-bond yield was at its all-time lows while the 10-year T-bond yield was erasing 2.6% on the day.
While speaking at the ECB forum in Sintra, Draghi noted interest rate cuts were still an option if they needed to provide more stimulus to boost inflation toward their target. Meanwhile, today’s data published by the Eurostat revealed that the core Consumer Price Index (CPI) in the eurozone dropped to 0.8% on a yearly basis in May from 1.3% in April.
On the other hand, the U.S. Census Bureau today announced that housing starts declined by 0.9% on a monthly basis in May while building permits increased by 0.3%. Ahead of the FOMC’s critical policy announcements tomorrow, the US Dollar Index didn’t pay much attention to today’s data and was last seen posting small daily gains at 97.63.
Technical levels to watch for
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