USD hits new highs against most major currencies as oil and yields climb
Key Takeaways
- •The U.S. dollar reached new highs against most major currencies as oil prices and yields moved higher.
- •Oil prices rose by nearly $4 and approached the $90 level.
- •The two-year Treasury yield increased by 3.7 basis points, while the 10-year yield rose by 3.4 basis points.
- •President Trump said the U.S. is striking Iranian targets near the Strait of Hormuz in response to attacks from Iran.
- •AUDUSD was the only major pair not trading to a new extreme against the dollar.
USD hits new highs against most major currencies as oil and yields climb
USD
The AUDUSD is the only currency pair that is not trading to a new extreme as yields remain elevated and oil moves higher.
The USD is moving to a new high versus most of the major currencies, helped by rising oil prices and higher yields amid increased military tension in the Middle East. For traders watching cross-asset moves, the combination matters because the dollar is being compared not just against currencies, but also against the backdrop of energy markets and U.S. rates, both of which can shape short-term FX positioning.
Oil prices are up nearly $4 on the day and are approaching the $90 level. Yields remain elevated, with the two-year yield up 3.7 basis points and the 10-year yield up 3.4 basis points.
U.S. President Trump said the U.S. is currently striking Iran targets near the Strait of Hormuz and that the strikes are larger and more powerful. He said the attacks are in retaliation for Iranian attacks, which were in retaliation for U.S. attacks on Iran. The vicious circle continues.
In the video above, the analysis looks at each of the major currencies versus the USD, including EURUSD, GBPUSD, USDCHF, USDJPY, USDCAD, AUDUSD and NZDUSD, and discusses the technical factors driving each pair as they reach new lows versus the greenback.
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