|

US Dollar Index drops to lows near 95.50

  • The index fades the initial optimism and eases to 95.50.
  • Yields of the US 10-year note return above 3.21%, fresh peaks.
  • US Initial Claims and Philly Fed index next of relevance in the docket.

The greenback, in terms of the US Dollar Index (DXY), is now fading the initial spike to the vicinity of 95.80 and returns to the mid-95.00s.

US Dollar Index looks to data

The upside momentum in the index gathered extra oxygen as of late after the FOMC minutes signaled on Wednesday that further tightening remains well on the cards by the Federal Reserve. In addition, the minutes discarded any influence on the Committee by recent comments by President Trump.

The buck moved higher in tandem with yields of the key US 10-year note, which managed to climb back to levels above 3.21%, recording at the same time fresh multi-day peaks.

In the data sphere today, the usual weekly report on the labour market is due seconded by the always-relevant Philly Fed index. Attention, as well, should be on the EU Leaders Summit, which kicks in today with Brexit in centre stage.

US Dollar Index relevant levels

As of writing the index is losing 0.14% at 95.50 and a breakdown of 95.41 (10-day SMA) would open the door to 95.10 (21-day SMA) and finally 94.79 (low Oct.12). On the flip side, the initial up barrier lines up at 95.77 (high Oct.18) seconded by 96.16 (high Oct.9) and then 96.98 (2018 high Aug.13).

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

More from Pablo Piovano
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD recovers to 1.1750 region as 2025 draws to a close

Following the bearish action seen in the European session on Wednesday, EUR/USD regains its traction and recovery to the 1.1750 region. Nevertheless, the pair's volatility remains low as trading conditions thin out on the last day of the year.

GBP/USD stays weak near 1.3450 on modest USD recovery

GBP/USD remains under modest beairsh pressure and fluctuates at around 1.3450 on Wednesday. The US Dollar finds fresh demand due to the end-of-the-year position adjustments, weighing on the pair amid the pre-New Year trading lull. 

Gold climbs to near $4,350 on Fed rate cut bets, geopolitical risks

Gold price rises to near $4,345 during the early Asian session on Friday. Gold finished 2025 with a significant rally, achieving an annual gain of around 65%, its biggest annual gain since 1979. The rally of the precious metal is bolstered by the prospect of further US interest rate cuts in 2026 and safe-haven flows.

Bitcoin, Ethereum and XRP prepare for a potential New Year rebound

Bitcoin, Ethereum, and Ripple are holding steady on Wednesday after recording minor gains on the previous day. Technically, Bitcoin could extend gains within a triangle pattern while Ethereum and Ripple face critical overhead resistance. 

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).