Dollar Expected to Steam Ahead as Bond Yields Rise

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https://www.wsj.com/finance/investing/aud-usd-could-have-further-to-fall-1b1a1310

Updated Oct. 4, 2023 3:30 am ET

0727 GMT – The dollar’s strong gains should continue due to higher U.S. bond yields and the “relentless run of strong U.S. data,” including Tuesday’s bumper Jolts jobs data, says ING currency analyst Chris Turner. Strong data mean money markets continue to reduce expectations for how far the U.S. Federal Reserve will cut interest rates and they now price a low point above 4.50% in two to three years’ time, up from 3.68% at the start of September, he says. “There seems little reason to sell the dollar at present—perhaps only a shock drop in ISM services [data at 1400 GMT] could weigh on the dollar today.” The DXY dollar index could rise to 108, from 107.204 currently, he says. (jessica.fleetham@wsj.com)

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