US Dollar Index pushes higher to new tops near 93.20


  • DXY extends the rally further north of the 93.00 mark.
  • US 10-year yields rebound to the area above 1.20%.
  • MBA Mortgage Applications, EIA’s weekly report next on tap.

The sentiment around the dollar stays anything but abated for yet another session and pushes the US Dollar Index (DXY) to new 3-month peaks near 93.20 on Wednesday.

US Dollar Index supported by risk aversion

The index adds to the ongoing advance and posts gains for the fifth session in a row on Wednesday, always on the back of the perseverant risk aversion and amidst a mild pick-up in US yields.

In fact, coronavirus concerns exclusively stemming from the spread of the Delta variant continue to pose a threat to the global growth prospects and lend extra wings to the safe havens.

In addition, yields of the key US 10-year note seem to have met some contention in sub-1.15% levels on Tuesday and now regain the 1.20% yardstick and beyond, lending at the same time further legs to the buck.

In the US data space, weekly MBA’s Mortgage Applications are due in the first turn seconded by the EIA’s report on the US crude oil supplies during last week.

What to look for around USD

The recovery in DXY already surpassed the key 93.00 barrier and goes for the so far 2021 highs in the 93.50 area. The positive move in the index is mainly sustained by the resumption of the risk aversion following the resurgence of coronavirus concerns. The positive stance in the dollar, in the meantime, remains propped up by the solid pace of the economic recovery, higher-than-expected inflation figures and rising rumours of rate hikes/QE tapering earlier than anticipated.

Key events in the US this week: MBA Mortgage Applications (Wednesday) – Initial Claims, Existing Home Sales (Thursday) – Flash July Manufacturing/Services PMI (Friday).

Eminent issues on the back boiler: Biden’s multi-billion plan to support infrastructure and families. 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?

US Dollar Index relevant levels

Now, the index is gaining 0.21% at 93.16 and a breakout of 93.43 (2021 high Mar.21) would open the door to 94.00 (round level) and finally 94.30 (monthly high Nov.4). On the other hand, the next down barrier lines up at 92.46 (23.6% Fibo of the November-January rally) followed by 92.00 (monthly low Jul.6) and then 91.51 (weekly low Jun.23).

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1900, retains weekly gains

The EUR/USD pair trades around the 1.19 mark after the Eurozone Q2 Prelim GDP beat estimates with 2% while US PCE inflation rose by less than anticipated in June, printing at 3.5% YoY. Risk-on mood persists.

EUR/USD News

GBP/USD retreats after flirting with 1.4000

GBP/USD retreated from near the 1.4000 level, but the greenback remains away from investors' radar. Optimism over the Brexit issue and the declining trend in new COVID-19 cases in the UK offers support to the pound.

GBP/USD News

XAU/USD slides to $1,820 area, downside seems limited

Gold traded with a mild negative bias around the $1,825 region, or daily lows, during the early North American session, albeit lacked any follow-through selling.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

NIO shares rise again as Wall Street shrugs off recent China woes

NYSE:NIO added 1.86% as EV and China stocks bounced back again. Nio rides higher as industry leader Tesla gets some major upgrades. Nio rival XPeng releases a refreshed look for its compact SUV.

Read more

Forex MAJORS

Cryptocurrencies

Signatures