The Dollar Index (DXY) rose for the third consecutive session to 106, fully recovering from its third quarter decline, notes Philip Wee, Senior FX Strategist at DBS.
Strong USD is getting expensive
“Several exchange rates in the DXY basket are near critical levels. EUR/USD rebounded from the April low of 1.06 overnight. GBP/USD fell below 1.28 to 1.2748, near the August low of 1.2665.”
“Weaker European currencies pushed USD/CHF above 0.88 this week for the first time since late July. USD/JPY is close to the psychological level of 155. USD/CAD’s rise stopped at a new yearly high of around 1.3970 this month.”
“According to the 14-day RSI, the DXY appears overbought, and many currencies are oversold since the Trump trade.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
