US Dollar Index struggles for direction around 93.20


  • DXY stays cautious above 93.00 ahead of key events.
  • US 10-year yields rebound past the 1.34% area.
  • Building Permits, Housing Starts, API report next on tap.

The greenback, when tracked by the US Dollar Index (DXY), faces some selling pressure after hitting fresh tops near 93.50 on Monday.

US Dollar Index looks vigilant ahead of FOMC

The index adds to Monday’s small losses and returns to the 93.20 area on the back of the broad-based cautious note in the global markets and despite the move higher in US 10-year yields to levels above 1.34%.

The dollar loses some ground and stays offered in the first half of the week amidst some loss of upside momentum despite climbing to new monthly highs around 93.50 on Monday.

The closely followed US 2y-10y yield gap gave away around 6 pts on Monday amidst falling yields in a context dominated by the risk aversion mood, all reflecting rising jitters around China’s Evergrande crisis.

Moving forward, the greenback is predicted to trade within a narrow range and vigilant in light of the FOMC gathering on Wednesday.

Later in the US docket, the housing sector will take centre stage with the releases of Building Permits and Housing Starts for the month of August.

What to look for around USD

The index extended the march north to the mid-93.00s on Monday, reaching at the same time new highs for the current month. Tapering speculations, risk aversion, higher yields and some auspicious results from US fundamentals kept the upbeat mood around the buck unchanged in past sessions. While developments around the Delta variant and the impact on the economy should also underpin the upside momentum in the dollar, cautiousness among investors could spark some consolidation in DXY ahead of the key FOMC event later in the week.

Key events in the US this week: Building Permits, Housing Starts (Tuesday) – FOMC meeting, Existing Home Sales (Wednesday) – Initial Claims, Flash Manufacturing PMI, CB Leading Index (Thursday) – New Home Sales, Chairman Powell speech (Friday).

Eminent issues on the back boiler: Biden’s multi-trillion 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. Debt ceiling debate. Geopolitical risks stemming from Afghanistan.

US Dollar Index relevant levels

Now, the index is gaining 0.02% at 93.24 and a break above 93.45 (monthly high Sep.20) would open the door to 93.72 (2021 high Aug.20) and then 94.30 (monthly high Nov.4 2020). On the flip side, the next down barrier emerges at 92.32 (weekly low Sep.14) seconded by 91.94 (monthly low Sep.3) and finally 91.78 (monthly low Jul.30).

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 retreats below 1.1300 area as NFP-inspired dollar weakness fades

EUR/USD jumped to a daily high of 1.1333 with the initial market reaction to the disappointing November Nonfarm Payrolls data but quickly returned below 1.1300. Rising US Treasury bond yields seem to be helping the dollar stay resilient against its major rivals. 

EUR/USD News

GBP/USDdrops to 1.3250 area as dollar regains strength

GBP/USD spiked above 1.3300 in the early American session with the initial market reaction to the gloomy US November jobs report. However, the greenback regathered strength on hawkish Fed commentary and forced the pair to turn south.

GBP/USD News

Gold struggles to capitalize on weak NFP data, holds near $1,770

Gold spiked to a daily high near $1,780 with the initial market reaction to the disappointing Nonfarm Payrolls data from the US but seems to be having a difficult time preserving its bullish momentum with the 10-year US T-bond yield staying resilient.

Gold News

The bull and the bear case for BTC

Bitcoin price saw a bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. Bitcoin is likely to experience massive volatility as the situation resolves over time. 

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures