Dollar Index rests above 200-week MA, T-yields recover from 6-week lows

The dollar index (DXY) is flat lined above 200-week moving average (MA) of 94.85 in Asia.
Treasury yields recovery from 6-week lows.

Omkar Godbole FXStreet Contributor

Currently, the dollar index (DXY) is trading in a sideways manner above 94.85 (200-week MA), having clocked a high of 95.03 yesterday despite the drop in the treasury yields to six-week lows.

The EUR/USD (biggest component of DXY) fell sharply to 1.1510 (lowest level since July 20) on Tuesday on fears that fresh elections in Italy would deliver a stronger mandate to anti-EU parties.

Hence, the DXY posted gains even though the US 10-year treasury yield and the 2-year treasury yield fell to a 6-week low of 2.76 percent and 2.32 percent, respectively. Moreover, the treasury prices rose as Italian political uncertainty boosted haven demand.

As of writing, the 10-year yield is trading at 2.81 percent - up 5 basis points from the previous day's low of 2.76 percent. The recovery could be an indication the risk-off moves may have run out of steam and so the EUR/USD could witness a corrective rally. Thus, rising Treasury yields may end up pushing the greenback lower.

Dollar Index Technical Levels

The resistance is seen at 95.15 (Nov. 7 high), 95.47 (June 30 low), 96.33 (June 14 low). Meanwhile, support is lined up at 94.27 (Oct. 6 high), 94.22 (Dec. 12 high), and 94.06 (10-day MA).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD rises to 1.1800 neighborhood amid renewed USD selling and trade uncertainties

The EUR/USD pair regains positive traction during the Asian session on Wednesday and jumps to the 1.1800 neighborhood in the last hour, reversing the previous day's modest losses. The intraday move up is sponsored by the emergence of fresh US Dollar, which continues to be weighed down by persistent trade-related uncertainties.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold stays firm above $5,150 as Trump's delivers State of the Union speech

Gold finds fresh demand and regains the $5,150 level following the previous day's pullback from the monthly peak as traders assess Trump's State of the Union address. Trade-related uncertainties and geopolitical risks seem to act as a tailwind for the safe-haven bullion.

Bitcoin, Ethereum and Ripple post cautious recovery amid downside risks

Bitcoin, Ethereum, and Ripple are posting a cautious recovery on Wednesday following a market correction earlier this week. BTC is approaching a key breakdown level, while ETH and XRP are rebounding from crucial support levels.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.