Dollar Firms Amid Rising Treasury Yields
The U.S. dollar gained strength as Bitcoin struggled in early Asian trading on Thursday as Treasury yields edged higher. Investors closely monitored economic indicators and trade policy developments under President Donald Trump.
The dollar and U.S. yields have been under pressure in recent weeks due to weaker economic data and concerns about the impact of potential tariffs. Traders are increasingly betting on Federal Reserve interest rate cuts, with expectations of two quarter-point reductions this year—one likely in July and another as early as October.
U.S. two-year Treasury yields rose to 4.09%, recovering from a previous session low of 4.065%, the lowest since November. The 10-year yield also climbed to 4.2772% after hitting a 2.5-month low of 4.245% on Wednesday.
Uncertainty Over U.S. Trade Policy
Market sentiment remained fragile as Trump created uncertainty over upcoming tariffs on key trading partners Canada and Mexico. On Wednesday, he suggested the levies would take effect on April 2, extending the deadline by a month. However, a White House official later stated that the original March 2 deadline was still in place, adding to the confusion surrounding U.S. trade policy.
With trade tensions high, investors are awaiting key U.S. economic data. Thursday’s GDP and durable goods orders reports will offer insights into economic growth, while Friday’s Personal Consumption Expenditures (PCE) inflation data—closely watched by the Fed—could shape expectations for future rate decisions.
Mixed Stock Market & Bitcoin Performance
Asian equities showed mixed movement on Thursday. Japan’s Nikkei rose marginally by 0.1%, Australia’s benchmark index gained 0.5%, while South Korea’s Kospi dropped 0.7%. Hong Kong’s Hang Seng climbed 0.9%, supported by tech stocks, while China’s blue-chip CSI 300 index edged up 0.2%.
U.S. stock futures remained stable, with Nasdaq futures unchanged after a 0.3% gain in regular trading. S&P 500 futures also saw little change following a flat session.
Shares of U.S. chipmaker Nvidia fell 1.5% in after-hours trading, despite rallying 3.7% earlier on Wednesday. The company reported a strong first-quarter forecast, though investors showed little reaction, possibly due to the absence of major surprises in the earnings report.
Commodities and Cryptocurrency Market Trends
Bitcoin remained steady at $84,742 after losing more than 11% this week.
Gold held firm at $2,912 per ounce, staying around $40 below its record high, as trade uncertainty kept investors cautious.
Crude oil prices recovered slightly from two-month lows following an unexpected rise in U.S. fuel stockpiles. Brent crude rose 0.26% to $72.72 per barrel, while U.S. West Texas Intermediate crude climbed 0.23% to $68.78 per barrel.
As markets continue to navigate economic uncertainty, investors remain focused on key data releases and trade policy developments that could shape the outlook for growth and inflation.
With inputs from Reuters
