TheÂ US dollar rallied against most other major currencies onÂ Monday, rebounding from last weekâs disappointing performance. TheÂ jump inÂ theÂ greenback occurred following several key economic reports andÂ aÂ massive selloff inÂ US government debt holdings.
It was reported that theÂ Bank ofÂ Japan (BOJ) is considering adopting changes toÂ its trademark yield curve control policies, leading investors toÂ sell their US andÂ Japanese government bonds. TheÂ trend helped push up yields â theÂ 10-year US Treasury yield advanced 0.03% andÂ theÂ 10-year Japanese government bond yield rose 0.05%.
Elsewhere inÂ theÂ world ofÂ monetary policy, President Donald Trump slammed theÂ Federal Reserve forÂ raising interest rates. Despite lamenting onÂ artificially low rates during theÂ 2016 election campaign trail, theÂ president said rate hikes are negatively impacting what his government is doing toÂ spur economic growth, create jobs, andÂ Make America Great Again.
Treasury Secretary Steven Mnuchin andÂ Trump did note that they respect theÂ central bankâs independence, which has been aÂ point ofÂ contention since aÂ former candidate toÂ helm theÂ Eccles Building said he does not believe Trump understands orÂ respects theÂ institutionâs independence.
During last weekâs testimony toÂ theÂ Senate Banking Committee andÂ House Financial Services Committee, Fed Chair Jerome Powell projected that theÂ US economy looks inÂ great shape heading into 2019, hinting that theÂ normalization ofÂ rates will continue asÂ anticipated.
Also, traders are still paying close attention toÂ what President Trump andÂ his administration are doing pertaining toÂ international trade. BothÂ Mnuchin andÂ President Trump have revealed that theÂ White House is thinking about slapping tariffs onÂ all $505 billion worth ofÂ Chinese goods.
OnÂ theÂ economic news front, theÂ Chicago Fed National Activity Index (CFNAI), which is used toÂ measure economic activity, registered atÂ 0.43 inÂ June, up from negative 0.45 inÂ theÂ previous month. Meanwhile, theÂ National Association ofÂ Realtors reported onÂ Monday that total existing-home sales tumbled 0.6% toÂ aÂ seasonally adjusted annual rate ofÂ 5.38 million inÂ June, down from 5.41 million inÂ May.
TheÂ US Dollar Index gained 0.07%.
TheÂ USD/CAD currency pair was left unchanged atÂ 1.3172 atÂ 03:15 GMT on Tuesday. TheÂ USD/JPY slipped 0.09% toÂ 111.25.
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