XE Market Analysis: Europe – Apr 20, 2021

The dollar has diverged from U.S. yields, with the greenback, as measured by the narrow trade-weighted DXY index, extending yesterday’s steep decline in posting a fresh seven-week low at 90.88. The index is now down by a cumulative 2.8% from the five-month highs that were seen in late March. Today’s decline marks a break from the recent correlative pattern, being concomitant with rising longer-dated Treasury yields.