XE Market Analysis: Europe – Aug 31, 2020

The dollar posted fresh lows during the pre-Europe session in Asia-Pacific markets. The framework regime shift at the Fed, announced by Chairman Powell last week, effectively reaffirmed the dollar softening trend, concomitantly with shorter dated inflation-adjusted Treasury yields posting fresh lows. The yields on the 5- and 7-year real constant maturity Treasury notes were indicated on Friday at new seven-year-plus lows, at -1.40% and -1.26%, respectively (down by a respective 15 bp and 11 bp from week-before levels).