|

US Dollar Index: DXY retreats towards 103.00 despite strong yields, focus on mid-tier US data, central bankers

  • US Dollar Index stays pressured for the second consecutive day after reversing from 10-week high on Friday.
  • US Treasury bond yields jump to late 2007 high as market players sell government securities amid mixed mood.
  • Market’s consolidation ahead of Jackson Hole Symposium, China concerns prod DXY bulls.
  • US data, second-ranked Fed officials’ speeches will entertain intraday traders of Greenback.

US Dollar Index (DXY) remains depressed around 103.30 as it renews the intraday low while keeping the week-start pessimism during the early hours of Tuesday’s Asian session. In doing so, the Greenback’s gauge versus the six major currencies ignores the strong US Treasury bond yields amid the market’s mixed sentiment ahead of this week’s top-tier data/events.

That said, the US 10-year Treasury bond yields rose to the highest level since 2007, to around 4.354% before ending Monday’s trading day near 4.34%.

Apart from the pre-Jackson Hole consolidation, the DXY traders also justify China’s efforts to defend the post-COVID economic recovery via a slew of stimulus measures, as well as the receding recession fears across the board.

Additionally, the Federal Reserve Bank of New York unveiled its SCE Labor Market Survey results late Monday that suggested record wage expectations and could have prod the DXY bears. “The Lowest wage respondents would be willing to accept for a new job jumped to a record high of $78,645 in July, up from $72.873 a year ago,” said the findings.

It should be observed that the previous week’s mostly upbeat United States data prod the Federal Reserve (Fed) doves and put a floor under the US Dollar Index. However, some of the top-tier US banks appear struggling to confirm Fed Chair Jerome Powell’s hawkish move at Jackson Hole. That said, Goldman Sachs expects Fed Chair Powell to sound defensive during the annual event of the central bankers but the Bank of America (BofA) expects Fed’s Powell to push back against the rate cut expectations.

During the last week, upbeat activity and wage growth numbers joined hawkish Fed Minutes to enable the US Dollar Index (DXY) to print a fifth weekly run-up. The same also challenged the previous policy pivot concerns and escalate the market’s anxiety before this week’s central bankers’ speeches at the Kansas Fed’s annual event.

Moving on, the US Existing Home Sales for July and Richmond Fed Manufacturing Index for August will join speeches from the mid-ties Federal Reserve (Fed) officials to direct intraday DXY moves. However, major attention will be given to Friday’s Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium amid indecision about the US central bank's next moves.

Technical analysis

A one-month-old rising wedge bearish chart formation, currently between 104.00 and 103.20, joins nearly overbought RSI (14) line to challenge the USD/JPY buyers.

Additional important levels

Overview
Today last price103.29
Today Daily Change-0.14
Today Daily Change %-0.14%
Today daily open103.43
 
Trends
Daily SMA20102.38
Daily SMA50102.19
Daily SMA100102.36
Daily SMA200103.16
 
Levels
Previous Daily High103.68
Previous Daily Low103.22
Previous Weekly High103.68
Previous Weekly Low102.77
Previous Monthly High103.57
Previous Monthly Low99.57
Daily Fibonacci 38.2%103.51
Daily Fibonacci 61.8%103.4
Daily Pivot Point S1103.21
Daily Pivot Point S2102.99
Daily Pivot Point S3102.75
Daily Pivot Point R1103.67
Daily Pivot Point R2103.9
Daily Pivot Point R3104.13

Author

Anil Panchal

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

More from Anil Panchal
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 retreats to $4,300 area, looks to post monthly gains

Gold stays on the back foot on the last day of 2025 and trades near $4,300, possibly pressured by profit-taking and position adjustments. Nevertheless, XAU/USD remains on track to post gains for December and extend its winning streak into a fifth consecutive month.

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).