The euro fell against most of its major peers as investors sold peripheral government bonds amid speculation the region’s economy remains sluggish.
Treasury 10-year notes fell for the fifth straight day, the longest stretch of losses since October, after the Institute for Supply Management’s non-manufacturing index rose more than forecast in May.
The dollar may be forming a base against the yen, a move that could spur a longer-term uptrend, according to Bank of America Corp.
Treasuries dropped, pushing 10-year yields to the highest level in a month, as better-than-estimated corporate earnings damped the allure of Treasuries and sent yields higher at a $32 billion sale of three-year debt.
The euro may drop to the weakest level in almost a year and a half after breaking through its low from October, according to Bank of America Corp.
Commodities may fall 11 percent in the next few weeks to the lowest since May 2010, according to technical analysis by Bank of America Corp.
Whether or not the European Central Bank decides to add stimulus tomorrow, trading patterns show the euro is headed for a decline.
BofA’s Macneil Curry Says Gold Still in Bull Market
BofAML’s Curry Sees Continuation of Euro Weakness