• Fixed-income sell-off remains the dominant driver across G10 FX, keeping the USD firmly in the driver’s seat

• As the chart highlights, any further upside in US yields leaves gold, SEK, NZD and CHF most at risk

• The US 10-year yield is firmly above 5%, but the bigger concern is the rate of change, not the level itself

• If this momentum persists, it reinforces the USD bid and risks tipping broader markets into a risk-off tone

• In that scenario, expect gold, SEK and NZD to come under renewed selling pressure
FX sensitivity to US yields

Justin McQueen is a Reuters market analyst. (The views expressed are his own). ((Email: ))