US dollar climbs to the highs of the day as yields climb

<p>The bond market is the tail that's wagging the FX dog at the moment.</p><p>The latest leg higher in the US dollar comes after a rebound in yields after an earlier dip. US 10s are now fractionally higher on the day at 4.26% from a low of 4.21% and it's similar across the curve.</p><p>The stock market isn't doing much of anything at the moment and there hasn't been anything notable on the fundamental side in the US. I fear this dollar rally hints at a weak close for equities.</p>

This article was written by Adam Button at www.forexlive.com.