US Dollar Index leaps to session tops around 90.50


  • DXY reverses the recent downside and re-tests 90.50.
  • US 10-year yields approach the key 1.40% mark.
  • Chicago Fed Index, Dallas Fed Index, Fedspeak next on tap.

The greenback, when tracked by the US Dollar Index (DXY), starts the day on a positive footing and advances to daily highs in the mid-90.00s on Monday.

US Dollar Index focused on data, yields

The index regains some upside pressure and reverses two pullbacks in a row at the beginning of the week, as the dollar continues to derive support from higher US yields. Against that, yields of the US 10-year Treasuries already navigate in levels close to the key 1.40% barrier, area last visited a year ago.

In the meantime, market participants continue to look to the reflation trade, the vaccine rollout and extra US fiscal stimulus as the immediate drivers of the price action surrounding the index for the time being.

In the US data space, the Chicago Fed National Activity Index is due seconded by the Dallas Fed Manufacturing Index. In addition, FOMC’s permanent voter M.Bowman (centrist) is due to speak.

What to look for around USD

The corrective upside in the index appears to have met a decent hurdle near the 91.00 yardstick recently, always following the renewed correlation to US yields. However, bullish attempts in the buck should remain short-lived amidst the broad-based fragile outlook for the currency in the medium/longer-term. The latter is sustained by the (reinforced) accommodative stance from the Fed, extra fiscal stimulus and prospects of a strong recovery in the global economy, which are seen underpinning the better sentiment in the risk-associated space.

Key events in the US this week: Consumer Confidence tracked by the Conference Board (Tuesday), Chief Powell’s semi-annual Monetary Policy Report (Wednesday), another revision of Q4 GDP and Initial Claims (Thursday) and inflation figures gauged by the PCE and the final Consumer Sentiment measure (Friday).

Eminent issues on the back boiler: US-China trade conflict under the Biden’s administration. Tapering speculation vs. economic recovery. US real interest rates vs. Europe. Could US fiscal stimulus lead to overheating? Future of the Republican party post-Trump acquittal.

US Dollar Index relevant levels

At the moment, the index is gaining 0.05% at 90.40 and a breakout of 91.05 (weekly high Feb.17) would open the door to 91.46 (100-day SMA) and finally 91.60 (2021 high Feb.5). On the other hand, immediate contention emerges at 90.22 (weekly low Feb.16) followed by 90.04 (weekly low Jan.21) and then 89.20 (2021 low Jan.6).

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

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD slips from highs as investors await US Retail Sales

EUR/USD has backed down from the highs near 1.20 as the dollar benefits from the Fed's upbeat mood. All eyes are on US Retail Sales, which are set to leap. 

EUR/USD News

GBP/USD rises toward 1.38 ahead of US data, Brexit meeting

GBP/USD is edging up toward 1.38, reversing its previous falls in tense trading ahead of all-important US retail sales. A Brexit-related meeting on Northern Ireland is also eyed. 

GBP/USD News

Bitcoin on-chain data shows BTC is reaching “peak hype”

Bitcoin’s on-chain data suggest a short-term correction may be needed before Bitcoin could continue its price rally. Market sentiment toward Bitcoin poses a major concern for the cryptocurrency, indicating it is approaching “peak hype.”

Read more

XAU/USD looks to retest $1750 as USD bounce fizzles ahead of US Retail Sales

Gold is breaking higher as the US dollar rebound loses steam. The US Treasury yields retreat ahead of the Retail Sales release. XAU/USD is teasing symmetrical triangle breakout on the 1H chart.

Gold News

Coinbase (COIN) closes down 14% from the $381 opening price, what next?

After a dream debut for the cryptocurrency exchange Coinbase Global Inc. (COIN) on Nasdaq at $381, the shares rallied as high as $429.54. Although the upswing failed to sustain, as Bitcoin fell from record highs and tech stocks tumbled across the board. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures