US dollar finds some bids as yields tick higher

<p>The US dollar is climbing across the board despite some dovish <a href="https://www.forexlive.com/centralbank/feds-goolsbee-if-we-make-good-progress-on-inflation-we-need-to-factor-that-into-rates-20240119/" target="_blank" rel="follow">comments from the Fed's Goolsbee</a>.</p><p>The market is continuing to try and calibrate Fed policy with 136 bps of cuts now priced in for the year and March at 55% for a cut. Bonds started the year extremely strong but they have been giving some back. US 10-year yields are up 2.7 bps to 4.17% today. The bottom was 3.78% on December 27 so it's been a sizeable move.</p><p>The dollar will continue to be supported as yields move up and so far economic data has pointed in that direction. This week, we got strong reports on US retail sales and a low initial jobless claims number. At the top of the hour we get the latest UMich consumer sentiment report. It's a low-quality economic indicator but it's still a market mover.</p><p>Equities could also be helping to boost the dollar as a strong pre-market reverses post-open. The S&amp;P 500 is up just 7 points and it's all in the Magnificent 7 stocks (once again). Nvidia is now up 17% year-to-date.</p><p>AUD/USD rebounded nicely yesterday and that extended into today's trading but it's evaporated in the last hour and is now up just 5 pips on the day.</p>

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