XE Market Analysis: North America – Feb 02, 2021

The dollar DXY index has posted a fresh six-week high at 91.17. EUR-USD concurrently dropped to a fresh two-month low at 1.2032. Dollar firming has been at play, while the euro has been experiencing concurrent underperformance. Yield spread differentials have been shifting back in the dollar’s favour, with the U.S. 10-year T-note yield rising over 10 bp over the last week in recouping back to levels around 1.10%. The 10-year Bund yield has risen by only about 5 bp over this period.