US Dollar Index firmer, hits 6-week peaks around 96.70
|- The index extends the rally to 96.70, 6-week highs.
- Yields of the US 10-year note bounce off the sub-2.63% area.
- Chief Powell due to speak on Tuesday.
Tracked by the US Dollar Index (DXY), the greenback is adding to recent gains and is now clinching fresh multi-week tops in the 96.70/75 band.
US Dollar Index looks to risk, trade
The index is up for the eighth consecutive session so far today, always on the back of a deteriorated sentiment around the risk-associated complex and renewed uncertainty ahead of US-China trade talks later in the week.
In fact, US and Chinese officials will resume trade talks on Thursday and Friday in Beijing, although market consensus is not expecting any resolution to be announced any time before the 90-day truce expires on March 30.
Looking ahead, there are no events scheduled today in the US docket, whereas Chief J.Powell is due to speak tomorrow on ‘Economic Development in High Poverty Rural Areas’.
What to look for around USD
US-China trade talks are set to resume later in the week, and any positive outcome or even an extension of the current truce would be positive for the risk sentiment and carries the potential to dent the buck’s rally. On another direction, weakness in overseas economies (vs. solid US fundamentals) plus G10 central banks apparently entering a ‘wait-and-see’ mode have been sustaining the upbeat momentum in the greenback as of late, as there is still a high degree of scepticism regarding the likeliness that the Fed’s tightening cycle could be drawing to a close.
US Dollar Index relevant levels
At the moment, the pair is up 0.04% at 96.67 and a breakout of 96.71 (high Feb.11) would target 96.79 (23.6% Fibo of the September-December up move) en route to 96.96 (2019 high Jan.2). On the flip side, immediate contention is located at 96.42 (55-day SMA) followed by 96.22 (38.2% Fibo of the September-December up move) and finally 96.07 (21-day SMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.