US Treasury yields are moving higher, with the 10-year yield at 4.423% and the 30-year yield climbing to 4.961%, reflecting market reactions to inflation concerns linked to the new tariffs.
Goldman Sachs highlighted a ‘new phenomenon’ where US rates are decoupling from dollar strength, yet traders see the current backdrop of firm yields as supportive for the dollar’s upside.
Foreign holdings of US Treasuries remain stable, suggesting steady demand despite global trade concerns.
Dollar Index Market Forecast
The immediate focus for DXY traders is the 97.899 pivot. A clean breakout above this level could drive a move toward 99.00 and 99.421, supported by firmer Treasury yields and haven flows linked to trade tensions.
The weaker yen and euro add to the dollar’s near-term strength, while downside levels remain clearly defined for risk management.
Unless Trump signals a meaningful tariff reversal, the dollar remains positioned for further upside in the near term.
More Information in our Economic Calendar.
