Dollar index snaps three-day winning streak, fund manager warns of greenback strength in 2021

  • The dollar index fell 0.41% on Tuesday as the US 10-year yield ended a five-day winning trend. 
  • A strong dollar will be a key theme to watch out for in 2021, according to a fund manager.

The dollar index, which tracks the greenback's value against majors, fell by 0.41% on Tuesday, ending a three-day winning run, which saw the battered index rise from 89.32 to 90.73, tracking an uptick in the US treasury yields. 

The 10- and 30-year yields have risen sharply in recent days, with oil rally and expectations for bigger fiscal stimulus under Joe Biden's presidency lifting inflation expectations to multi-month highs. Biden is expected to announce stimulus on Thursday. 

Julien Bittel, Fund Manager at Pictet Asset Management, believes the dollar may catch the bears off guard this year. The oversold currency has recently broken out of a falling wedge, confirming a reversal higher. 

Similar breakouts observed in early 2011, 2014, and 2018 paved the way for significant gains, as noted by Bittel. History could repeat itself if the Treasury yields continue to rise, putting pressure on the equity markets, boosting haven demand for the US dollar. 

Technical levels

Dollar Index Spot

Today last price 90.05
Today Daily Change 0.01
Today Daily Change % 0.01
Today daily open 90.04
Daily SMA20 90.04
Daily SMA50 91.15
Daily SMA100 92.25
Daily SMA200 94.66
Previous Daily High 90.62
Previous Daily Low 90.03
Previous Weekly High 90.25
Previous Weekly Low 89.21
Previous Monthly High 92.02
Previous Monthly Low 89.52
Daily Fibonacci 38.2% 90.25
Daily Fibonacci 61.8% 90.39
Daily Pivot Point S1 89.84
Daily Pivot Point S2 89.64
Daily Pivot Point S3 89.25
Daily Pivot Point R1 90.43
Daily Pivot Point R2 90.82
Daily Pivot Point R3 91.02



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD keeping its head above 21DMA at 0.7673 for now

AUD/USD saw downside during Monday’s Asia Pacific and early European session, dropping momentarily as low as 0.7660. The pair broke below an uptrend linking the 28 December 2020 high with the 4, 11 and 15 January lows.


EUR/USD is nearing the 1.2000 psychological threshold

EUR/USD corrective decline continues, with the pair approaching a critical psychological support level. Investors await Biden’s inauguration and ECB’s monetary policy decision.


XAU/USD fades recovery moves below $1,850, awaits fresh clues

Gold eases from the top of an immediate $10 trading range while declining to $1,837 at the start of Tuesday’s Asian session. The yellow metal took a U-turn from the lowest since December 01 the previous day as the US dollar stepped back after refreshing the one-month high.

Gold news

Stellar awaits a massive breakout but remains inside a no-trade zone

XLM has continued to trade sideways since we last reported about it. The digital asset remains locked inside a tightening range which will eventually burst. 

Read more

US Dollar Index: Immediately to the upside comes 91.00

DXY extends the march north and already trades at shouting distance from the 91.00 barrier, or new 2021 highs.

US Dollar Index News