XE Market Analysis: Europe – May 27, 2021

The dollar has lifted to a one-week high by the measure of the DXY index, at 90.18, extending the rebound from the four-month low that was seen on Tuesday at 89.54. This comes with 10-year Treasury yields ticking higher, despite a well absorbed 5-year auction yesterday, after falling to the lowest level since 22 April. Treasuries had perhaps gotten a little too rich, and the dollar a little too suppressed as key inflation data looms up on Friday, when the Fed’s preferred PCE deflator for April will be released.