Updated June 24, 2026 10:52 am ET
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1051 ET – The dollar strengthens while Treasury yields decline as markets react to Fed policy and easing geopolitical tensions. The Fed sounded surprisingly hawkish last week, fueling expectations of at least one and maybe two interest rate increases this year which would support the greenback. “The dollar’s spot price could continue to react to the near-term risk of rate hikes,” Naga.com’s Frank Walbaum says. Meanwhile, falling oil prices reduce inflation fears, weighing on yields. The Fed’s pledge to keep fighting inflation reassures markets that rates will fall after a potential tightening, Walbaum says. The WSJ Dollar Index rises 0.3%. The 10-year Treasury yield is at 4.416%, after reaching 4.5% overnight. (paulo.trevisaniwsj.com; ptrevisani)
1306 GMT – The euro’s decline against the dollar is likely to slow at the very least, Societe Generale’s Kit Juckes says in a note. The euro falls to a one-year low of $1.1324, according to LSEG data, following a recent increase in Federal Reserve interest-rate rise expectations and a paring of tightening bets for the European Central Bank. The euro has broken below the range of $1.14 and $1.20 it has been in for the majority of the past year, Juckes says. This could limit how much further the euro can fall, he says. “Fed and ECB expectations have been reset, and we need fresh economic data to drive the next leg of the move.” (renae.dyerwsj.com)
Listen
(3 min)
1051 ET – The dollar strengthens while Treasury yields decline as markets react to Fed policy and easing geopolitical tensions. The Fed sounded surprisingly hawkish last week, fueling expectations of at least one and maybe two interest rate increases this year which would support the greenback. “The dollar’s spot price could continue to react to the near-term risk of rate hikes,” Naga.com’s Frank Walbaum says. Meanwhile, falling oil prices reduce inflation fears, weighing on yields. The Fed’s pledge to keep fighting inflation reassures markets that rates will fall after a potential tightening, Walbaum says. The WSJ Dollar Index rises 0.3%. The 10-year Treasury yield is at 4.416%, after reaching 4.5% overnight. (paulo.trevisaniwsj.com; ptrevisani)
1306 GMT – The euro’s decline against the dollar is likely to slow at the very least, Societe Generale’s Kit Juckes says in a note. The euro falls to a one-year low of $1.1324, according to LSEG data, following a recent increase in Federal Reserve interest-rate rise expectations and a paring of tightening bets for the European Central Bank. The euro has broken below the range of $1.14 and $1.20 it has been in for the majority of the past year, Juckes says. This could limit how much further the euro can fall, he says. “Fed and ECB expectations have been reset, and we need fresh economic data to drive the next leg of the move.” (renae.dyerwsj.com)
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