US Dollar Index pushes higher to 97.35/40, daily highs

  • The index stays bid near the 200-day SMA.
  • US 10-year yields advance to 1.76% and above.
  • September’s Factory Orders, Durable Goods Orders next on tap.

The Greenback, in terms of the US Dollar Index (DXY), is advancing further at the beginning of the week and is now approaching to the critical 200-day SMA in the 97.40/45 band.

US Dollar Index now looks to data

The index is reversing five consecutive daily pullbacks after being rejected from last week’s tops in the 98.00 neighbourhood. The down move has been particularly exacerbated following the hawkish cut by the Federal Reserve last Wednesday.

The demand for the buck picked up extra pace today after positive comments from US trade negotiators, who hinted at the likeliness that a deal with China appears closer. The news lifted US yields and is propping up the selling pressure in the Japanese JPY via a higher USD/JPY.

In the US data space, September’s Factory Orders and Durable Goods Orders are next on tap followed by a speech by San Francisco Fed M.Daly (2021 voter, centrist). Investors’ attention will also be on the speech by ECB’s President C.Lagarde in Berlin.

What to look for around USD

DXY came under extra downside pressure despite the Fed’s ‘hawkish cut’ last week. The Fed is now expected to remain vigilant mainly on the global scenario, where trade concerns and the impact on global growth remain in centre stage amidst some loss of momentum in the domestic economy. On the broader view, the constructive outlook in DXY looks a bit damaged but it still is in play as the Fed moves into an impasse vs. the dovish stance from its G10 peers, the Dollar’s safe haven appeal and the status of ‘global reserve currency’.

US Dollar Index relevant levels

At the moment, the pair is gaining 0.26% at 97.37 and a break above 97.44 (200-day SMA) would aim for 98.00 (high Oct.30) and finally 98.28 (55-day SMA). On the downside, immediate contention aligns at 97.11 (monthly low Nov.1) seconded by 97.03 (monthly low Aug.9) and then 96.67 (low Jul.18).

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.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD consolidates losses below 1.3150 amid a tighter election poll

GBP/USD is trading below 1.3150, consolidating its losses after YouGov's MRP poll showed a tighter Conservative majority ahead of the UK elections on Thursday. Trade headlines and the Fed decision are also awaited.


EUR/USD remains pressured below 1.11 amid trade uncertainty, ahead of the Fed

EUR/USD is trading below 1.11, consolidating its gains. Uncertainty about the planned US tariffs on China looms and tension is mounting ahead of US inflation and the all-important Fed decision.


Forex Today: Boris gets a blow from big poll, tariff threat looms, focus on the Fed

President Donald Trump has yet to decide on the December 15 tariffs, according to the Wall Street Journal. On the other hand, the paper says that negotiators are laying the groundwork for a deal.

Read more

Gold stalls two-day winning streak on the Fed day, trade jitters continue

Gold prices register a mild loss of -0.05% while hovering below $ 1465 on Wednesday. The yellow metal seems to have lacked buying interest ahead of the key monetary policy meeting by the US Federal Reserve (Fed).

Gold News

USD/JPY: 200-hour EMA questions immediate rising trend-channel

USD/JPY recently took a U-turn from 200-hour Exponential Moving Average (EMA). Even so, it stays well within the two-day-old rising trend-channel formation. The pair trades around 108.75 at the press time on Wednesday.