US 10-year Treasury yields came off the 3.00% figure that was seen overnight for the first time in three years
Global investor sentiment keeps improving this week, albeit a cautious tone continues to persist as the Fed meeting looms. The dollar stays elevated, albeit slightly off multi-year highs registered around the 104.00 mark last week. Oil prices have settled in a range, struggling for direction these days, with lingering geopolitical concerns helping Brent stay afloat above $100 a barrel. Meanwhile, gold keeps losing ground, challenging fresh mid-February lows around $1,850 during the European hours on Tuesday.
Following mostly negative dynamics in Asia, European equities opened higher today. BP stocks are leading the way higher, adding 2.75% after a quarterly report showed that the company’s underlying profit rose more than 50% in the first quarter. On the negative side, the write-down of its stake in Russia’s Rosneft triggered a $20.38 billion loss during the period.
Meanwhile, US 10-year Treasury yields came off the 3.00% figure that was seen overnight for the first time in three years.The USD index turned marginally lower on the day in recent trading, oscillating around 103.50 during the European hours.
Traders are gradually shifting focus to the looming Fed’s two-day meeting that concludes on Wednesday. The central bank is widely expected to raise rates by 50 basis points. Should the Fed hint at the prospect of aggressive tightening in the months ahead, the greenback will receive another boost and could derail the 104.00 mark following the meeting.
Elsewhere, the bitcoin price has settled below the $40,000 figure after another failed attempt to overcome the 20-DMA, currently at $39,600. The BTCUSD pair is sitting around $38,500 on Tuesday, adding less than 1% on the day. In the near term, downside risks continue to persist while below the 100-DMA, today at $40,900.