US dollar steadies above 102 as Treasury yields firm; euro pressured by French tensions

by VT Markets
/
Oct 20, 2026

The US dollar steadied after two daily declines, supported by firmer US Treasury yields and renewed social and political strains in France. The US Dollar Index moved back above 102.00 on Monday, reversing part of last week’s slide. Attention now turns to ADP Employment Change Weekly, alongside Pending Home Sales, Housing Starts, Building Permits and the API’s weekly update on US crude oil inventories.

European Currencies and Data Ahead

French-related unease pressured the euro, pulling EUR/USD back towards 1.1200 after recent gains, with the EMU Current Account and Construction Output due, followed by ZEW Economic Sentiment for Germany and the bloc. Sterling eased from a two-day rebound but found support near 1.3300 as the UK labour market report approaches.

Asia-Pacific and Commodity Markets

USD/JPY rose beyond 158.00 after three daily drops, with Japan’s Balance of Trade next. AUD/USD climbed towards 0.7000 on firm Chinese data, ahead of Australia’s flash S&P Global Manufacturing and Services PMIs on October 23. Front-month WTI dipped, briefly breaking $97.00 a barrel, while gold fell below $4,150 per troy ounce.

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