Dollar struggles to sustain rally, eyes bond yields

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Dollar struggles to sustain rally, eyes bond yields
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The U.S. dollar was struggling to keep a rare rally together on Monday as its longest losing streak in a decade left much of the market structurally short of the currency and vulnerable to a squeeze on any upbeat news.

FILE PHOTO: A U.S. Dollar banknote is seen in this illustration taken May 26, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

“Our positions have been concentrated in the EUR-bloc, reflecting also the structural improvement in the European policy framework following the agreement over the recovery fund.” House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin on Sunday said they were open to restarting COVID-19 aid talks, after President Donald Trump took executive actions on unemployment benefits.

Investors were wary of a fresh flare up in Sino-U.S. tensions with trade talks scheduled for Aug. 15 even as Washington imposed sanctions on senior Hong Kong and Chinese officials.

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