On April 18, analysts at UniCredit Bank said in a report that the U.S. dollar has strengthened in recent days due to rising short-term U.S. Treasury yields, and it now appears that any gains may be limited.
Signs that the dollar’s rally may be running out of steam “have emerged,” they said, suggesting investors are cautious ahead of U.S. and European interest rate decisions in early May.
The euro has fallen back above $1.0950 and could get a boost if Germany’s ZEW economic sentiment index for April, released at 5 p.m. Beijing time today, is strong, analysts said.