US dollar under pressure falling from 3-month high

US dollar remained under pressure on Wednesday after falling from the highest level in almost three months against the euro in the previous session, with a decline in US bond yields, which increased the pace of the decline.

According to Reuters, analysts pointed to technical factors behind the dollar’s decline, after a two-day rise of up to 1.4% against the euro after unexpectedly strong US jobs data and cautious statements from Federal Reserve Chairman Jerome Powell, which invalidated bets. An early cut in interest rates.

US Treasury bond yields also fell from their highest levels on Tuesday due to strong demand for selling new three-year bonds, which reduced some support for the dollar.

There was little change in the dollar and was trading at $1.0755 against the euro in early Asian trading on Wednesday, after declining by 0.1 percent on Tuesday. The dollar had earlier touched its strongest level since November 14 at $1.0722.

The dollar index, which measures the performance of the US currency against six major currencies, including the euro, settled at 104.14 points after declining 0.29% on Tuesday. The index reached its highest level since November 14 at 104.60 points on Monday.

The dollar remained at 147.905 yen after falling 0.49 percent against the Japanese currency on Tuesday. Both currencies are highly sensitive to movements in Treasury yields.

Analysts and traders are highlighting next Tuesday’s US CPI data as a key test of bets on interest rates.

Traders currently expect a 19.5% chance of a rate cut in March, according to CME Group’s Fed Watch service, compared to a 68.1% chance at the beginning of the year.