US Dollar Index rises for the third day in a row
The US dollar gained momentum during the American session amid rising US bond yields and pushed the Dollar Index to the upside. It was about to post the third daily gain in a row and the highest close since April 21.
The greenback opened the day lower and dropped further, particularity against commodity currencies. Then it managed to stabilize and gained strength versus European currencies and the yen.
It rose marginally above yesterday’s highs and reached a fresh 2-week high at 99.56. Near the end of the session, it was hovering above 99.50, consolidating gains.
In Wall Street, the Dow Jones was down 0.19% while the Nasdaq was up 0.14%. In the bond market, the US 10-year yield, that earlier was at 2.370% was testing monthly highs above 2.410%. The rise in yields offered support to the US dollar.
Tomorrow, the Producer Price Index (PPI) for April will be released in the US. In the forex market, the key event is likely to be the Super Thursday in the UK, that includes the decision, the minutes and the Quarterly Inflation Report from the Bank of England.
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DXY Technical levels
To the upside, resistance levels might be located at 99.70 (Apr 20 high), 99.90 (Apr 21 high) and 100.20 (Apr 4 & 6 low). On the downside, support could be seen at 99.25 (20-day moving average), 98.50 (Apr 25 & 26 low) and 98.10 (Oct 14 & 17 high).
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
