The dollar lagged every other major currency through the European morning session on 21 August 2026 as traders kept digesting the US Treasury's decision to double long-term debt buybacks. EUR/USD pushed above 1.1700 and GBP/USD hit a fresh six-month high, while gold climbed to a session high near $4,600.
The US dollar lagged behind every other major currency in the European morning session on 21 August 2026, with the Australian dollar leading gains and the greenback bringing up the rear. Traders kept weighing the US Treasury's decision to double long-term debt buybacks this week, a move that has left the dollar falling as Treasury yields stall after a bounce the previous day.
US 10-year yields were down 0.6 basis points to 4.692% on the day. They had earlier climbed back to 4.70% while 30-year yields pushed to 5.25% before easing back. As a result, the dollar fell across the board. EUR/USD tested levels above 1.1700. GBP/USD hit a fresh six-month high of 1.3660. USD/JPY slipped 0.3% to 158.60. AUD/USD rose 0.8% to 0.7165.
Eurozone PMI data added a mixed backdrop: France and Germany both disappointed while the broader Eurozone reading was more positive, and UK PMI data was also stronger even as inflation pressures ramped up. Still, the surveys did little to move markets, which stayed fixed on the Treasury buyback story.
The pressure on the dollar coincided with gains elsewhere. Gold has been the session's biggest winner, briefly touching $4,600 and trading up 1.7% to $4,596. Silver touched $70 and traded up 2.6% to $69.90.
Equities also firmed, with S&P 500 futures up 0.4% and Nasdaq futures up 0.6% as Wall Street looked to recover from the previous session's setback.
Source: investingLive
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