US Treasury Yields Rise; All Eyes On Fed Minutes

It has been slipping, largely in tandem with a fall in USA bond yields, after hitting a two-week peak of 114.955 yen last Wednesday.The minutes from the Federal Reserve's last policy meeting due on Wednesday are the next key focus."The minutes could change the market's trend".

The euro was on the defensive on Tuesday, under pressure from fears that the French Presidential election could upset the status quo, as rising anti-establishment sentiment surfaced after last year's Brexit and the USA election.

The Fed minutes due to be released later on Wednesday could either reinforce or undermine recent hawkish comments from central bank policy makers. But Minneapolis Fed President Neel Kashkari said the US labor market had "more room to run", which suggests that he does not believe the central bank should raise rates quickly.

Federal Reserve Bank of Philadelphia President Patrick Harker indicated on Friday that he would support a rate-hike as soon as next month, saying he "would not take March off the table at this point".

Gold prices hold steady, trimming losses from the strong sell-off that occurred in trading overseas last night and now trading, in essence, unchanged.

The dollar index .DXY , which measures the greenback against a basket of six major currencies, was last up 0.5 percent at 101.460 after hitting a six-day high of 101.600 earlier.

The US dollar, which was boosted by hawkish comments from various Fed officials in the previous session, edged down on Wednesday. She also implied a faster pace of interest rate hikes in the future.

The negative sentiment led to the Euro easing to an intraday low of $1.04972, the Euro falling to sub-$1.05 levels for the first time since early January.

The euro was on course for its biggest one-day percentage decline against the dollar since January 18.

The euro remained pressured by market concerns about the anti-European Union rhetoric from French presidential candidate Marine Le Pen ahead of the first round of French elections on April 23.

In overnight news, the Euro zone Markit composite purchasing managers' index (PMI) came in at 56.0 in February from 54.3 in January.

  • Zachary Reyes