EURUSD has an uptrend

27 Sep 2023

The U.S. dollar extends gains, hitting another ten-month high against a basket of currencies, helped as investor worries over a potential government shutdown lift safe-haven assets, says Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in a note. "Investors continue to dump stocks and buy U.S. dollars on looming uncertainty regarding whether the U.S. government will be shut in three days," she says. There is progress regarding a six-week short-term funding deal, but getting an approval from the Senate will be a challenge, she says. The DXY dollar index trades at 106.224, having earlier hit a high of 106.3210. EUR/USD falls to a six-month low of 1.0554, according to FactSet
Germany's 2.60% August 2033 Bund--the current 10-year German benchmark and the bond that will be reopened at auction on Wednesday--, offers limited relative value, according to rates strategists at Citi Research. They find the bond rich, or expensive, in the August 2032-August 2033-July 2034 yield "fly", a trading strategy where investors bet on the shape of the yield curve. The German Finance Agency will auction EUR4 billion in the August 2033 Bund with auction results at 0930 GMT. The August 2033 Bund is trading at a yield of 2.807%, up 0.5 basis points, according to Tradeweb