US dollar firms as Treasury yields unwind the Bessent drop

US Treasury yields are at the highs of the day, up 4-6 bps across the curve in a move that unwinds nearly half of the drop yesterday. With that, the US dollar is making headway.

The pound had traded higher against the US dollar but has now reversed course and is down 11 pips to 1.2554 (from a high of 1.2616).

The broader risk mood is worsening with US stocks halving gains. The S&P 500 is up just 10 points, or 0.15%.

The market is weighing tariffs and economic growth. Today’s economic data showed a slight bump in consumer confidence but the worst drop in new home sales in a decade.

This article was written by Adam Button at www.forexlive.com.