XE Market Analysis: Europe – Mar 31, 2021

The dollar has remained underpinned, as have mid- to longer-dated Treasury yields, albeit off yesterday’s peaks. The DXY dollar index pegged a new five-month high at 93.44, racking up the sixth higher high out of the last seven trading days. EUR-USD concurrently posted a five-month low at 1.1704, while USD-JPY clocked a new one-year high at 110.96. The rootedness of JGB yields in a world of rising yields has continued to make for yen underperformance, with EUR-JPY and AUD-JPY both lifting to one-week highs, and GBP-JPY to a 13-day peak.