US Dollar Index records new 2020 highs above 99.60


  • DXY moves to fresh YTD peaks beyond 99.60 on Wednesday.
  • Improved risk-on tone supports the dollar and US yields.
  • US Housing Starts, Building Permits surprised to the upside.

Another day, another new yearly high for the greenback, which is now navigating the 99.60/65 band when measured by the US Dollar Index (DXY).

US Dollar Index now targets 100.00

The march north in DXY appears unabated for yet another session, extending the 2020 rally to levels last traded in April 2017 beyond the 99.60 level and targeting at the same time the psychological mark at 100.00 the figure.

Improved sentiment in the risk complex is lifting US yields and is sponsoring the selling bias in safe havens such as the Japanese yen, all morphing into extra legs for the buck.

In addition, the US docket continues to surprise to the upside: Building Permits and Housing Starts expanded more than forecasted to 1.551M and 1.567M during January, while Producer Prices also rose beyond estimates at a monthly 0.5% during the same period.

Later in the session, all the attention will be on the FOMC minutes of the January meeting.

What to look for around USD

The index has extended the march north to new 2020 highs beyond 99.60 on Wednesday, keeping the bid bias unaltered for the time being. Investors are expected to keep looking to the performance of US fundamentals and the broader risk appetite trends for direction as well as any fresh developments from the COVID-19. In the meantime, the outlook on the dollar remains constructive and bolstered by the current “appropriate” monetary stance from the Fed vs. the broad-based dovish view from its G10 peers, the “good shape” of the domestic economy, the buck’s safe haven appeal and its status of “global reserve currency”.

US Dollar Index relevant levels

At the moment, the index is gaining 0.20% at 99.65 and a breakout of 99.66 (2020 high Feb.19) would aim for 99.67 (2019 high Oct.1) and finally 100.00 (psychological barrier). On the flip side, immediate contention emerges at 98.75 (23.6% Fibo retracement of the 2020 rally) seconded by 98.54 (monthly high Nov.29 2019) and then 98.40 (21-day SMA).

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD struggling around 1.13 as stocks fall

EUR/USD is trading around 1.13, off the highs as concerns about coronavirus and the court decision to hand Trump's financial to a grand jury trigger political uncertainty. US jobless claims beat expectations.

EUR/USD News

GBP/USD pressured toward 1.26 as the market mood worsens

GBP/USD is trading around 1.26, off the highs. The risk-off mood has pushed the dollar higher and is weighing on GBP/USD. UK fiscal stimulus and Brexit are also in play.

GBP/USD News

Gold: $1800 is being used as the intraday support for XAU/USD

Gold has retraced on Thursday during the US session after the recent impressive rally. At the moment the market is grappling with the USD 1800 per troy ounce psychological level. 

Gold News

Altcoin season confirmed

Second-line Altcoins take turns offering explosive price hikes. Bitcoin is giving up ground in the struggle for dominance, but it is not Ethereum that collects the profits. Ripple manages to enter the safe zone and bets on the upward continuity.

Read more

WTI: Rounding bottom on hourly chart highlights $41.15

WTI stays mildly bid above $41.00 while remaining above 100-HMA. Multiple failures to cross $41.15 confront a bullish chart formation on a short timeframe. June month’s top, February low will be on the buyers’ radar after a successful break.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures