This indicates persistent demand for US Treasuries amidst inflationary pressures and expectations of steady Fed policy. Rising yields generally dollar index chart tradingview support the US Dollar Index (DXY), which gains strength as higher yields attract global investors seeking returns. With no key events ahead, the Pound remains sensitive to broader market sentiment.

US Dollar Forecast: Awaits ADP Data to Confirm Direction, Treasury Yields and GBP/USD Outlook

The ISM Services PMI rose to 54.1, exceeding forecasts of 53.5, signaling continued growth in the services sector. Additionally, JOLTS job openings increased to 8.10M, highlighting resilience in the labor market. A continued rise in yields could push the DXY higher, potentially impacting emerging market currencies and commodities like gold. Conversely, a breakdown in yields may signal easing Fed rate expectations, softening dollar strength. Continued strength in the labor market and energy data could solidify the greenback’s dominance in global markets. US 10-year bond yields are at 4.673%, slightly down by 0.17% but still within an upward channel, supported by the 50 EMA at 4.622%.