USD dollar index hit 14-year highs yesterday with the index making it to highs of 103.56, levels last seen in December 2002. In parallel EURUSD has broken past the 1.05 hurdle that has been providing support since early 2015.
The US Dollar strength comes after that last Wednesday the Fed raised interest rates and also coined the possibility of another 3 more hikes throughout the coming year.
Gold has sold off heavily as the USD strengthened and as investors digest the possibility of more rate hikes in the coming future. XAUUSD wiped out all most 75% of 2016 gains since its July highs.
Treasury yields hit a new peak on Thursday. Taking the cue from the Fed, the 10-year Treasury note yield rose above 2.6 percent to its highest level since September 2014.
Widening U.S.-Japan interest rate differentials in turn lifted the dollar against the yen, pushing it to a 10-1/2-month high of 118.66 yen on Thursday. USDJPY last stood at 118.30, gaining more than 2.5 percent for the week.
