USD Remains 'King', Highest Bond Yield in 10 Months!

<p>&nbsp;The greenback's strengthening momentum continued in the European session, seeing the currency king remain trading at a two-month high against its main rival.</p><p><br /></p><p>The dollar index, which measures the strength of the greenback, traded firm at around 103.48 against six other major currencies.</p><p><br /></p><p>The strengthening also followed a rise in US 10-year bond yields which reached a new high since October at 4.30%.</p><p><br /></p><p>Minutes of the FOMC's latest meeting show there are some policymakers who want interest rates to remain unchanged due to concerns about economic risks.</p><p><br /></p><p>However, the final result saw interest rates raised following inflationary risks that may require further policy tightening.</p><p><br /></p><p><br /></p><p>According to CME Group's FedWatch tool, the market currently expects a more than 30% probability that the Fed will raise interest rates again by 25 basis points before the end of the year.</p><p><br /></p><p>In the meantime, the market is also shrouded in concern about economic problems in China which is feared to face new challenges in the financial and real estate crisis.</p><p><br /></p><p>This led to risk-sensitive currency trading, the Aussie and New Zealand dollars continued to languish around 9-month lows against the greenback.</p><p><br /></p><p>Disappointing Australian jobs data in July also put pressure on Aussie dollar trades.</p><p><br /></p><p>Meanwhile, the euro and pound remained weak at two-month lows against a stronger greenback.</p>