In the Asian session on Tuesday (April 18), the latest price of the U.S. dollar index was 102.08, and the opening price was 102.10. On the same day, U.S. Treasury yields continued to rise. The U.S. 2-year Treasury yield once rose above 4.2%, and the U.S. 10-year Treasury yield also rose to 3.6%.
On that day, the market believed that the probability of the Fed raising interest rates by 25 basis points at the next meeting rose to more than 85%, higher than the 78% the previous day. Investment strategist Sam Stovall said investors were now divided into two camps, leaving the market in a tug of war. One side believes that the Fed will stop raising interest rates quickly because of the weak economic performance, while the other believes that the Fed will be forced to extend the rate hike cycle because inflation remains high.
