US 10-year yields look steady around 1.65%

The dollar came under pressure on Friday following a short-lived rally sparked by stronger-than-expected US inflation figures earlier this week. As risk sentiment has improved, global stock markets see a bounce after a three-day losing streak, with US 10-year Treasury yields retreating from fresh highs. Against this backdrop, the safe-haven demand for the greenback has abated ahead of the weekend. 

The USD index loses further traction during the European hours, extending losses to fresh two-day lows near 90.50 following the rejection from the 91.00 hurdle yesterday. Meanwhile, US 10-year yields look steady around 1.65% as market participants have already digested the higher-than-expected inflation figures published on Wednesday.

As such, EURUSD is back above the 1.2100 figure, facing local resistance around 1.2130. The pair was off intraday highs at the time of writing but still positive on the day. Later today, US retail sales will take centre stage seconded by the preliminary reading of the consumer sentiment, industrial production figures, manufacturing production, capacity utilization and business inventories. The data could trigger a local rally in the greenback if the figures exceed expectations.

Elsewhere, gold prices extend gains for the second day in a row on Friday after deriving support above $1,800 yesterday. The precious metal climbed to the $1,835 area, a decisive break above which would pave the way towards three-month highs around $1,845. The key upside hurdle is still represented by the 100-DMA, today at $1,848.

In other markets, bitcoin price struggles to stage a more decisive recovery, oscillating around the $50,000 figure on Friday. The cryptocurrency market came under some pressure amid reports that the world’s largest crypto exchange, Binance, is under probe in the US for aiding money launders and tax evaders. As a reminder, on Thursday, BTCUSD fell 16% after Elon Musk’s Tesla discontinued the use of the crypto for the purchase of its electric cars.


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