The USD index ground higher throughout Monday’s session, touching a high of 95.92 and shrugging off weaker-than-expected U.S. data. Factory Orders fell 0.6% amid lower demand for machinery. The Greenback strength has been put down to last week’s strong job numbers, which reaffirm the economy remains on a solid footing.
The US 10-year treasury yield rose from 2.68% to 2.72%, and the US 2-year yield rose three basis points to 2.54%. Futures markets continued to price little chance of any further Fed rate hikes in this cycle.
In other news, Gold has slipped for the second day in a row down to $1316.40. Despite the slide of the past two days, gold was still in firm $1,300 territory, with enough resilience to make new 2019 highs thanks to the Federal Reserve's promise to be patient with rate hikes, say some analysts. All eyes will be on President Donald Trump’s State of the Union Address, scheduled for 9pm Eastern Time tonight.