The Dollar Index (DXY) failed three times in the last two days while trying to trade above the significant resistance around 103.30, notes Philip Wee, FX analyst at DBS.
DXY fails to break above 103.30
“The US dollar was caught between two forces. On the one hand, the dollar resumed its safe haven role due to a sell-off in semiconductor stocks that knocked major US stock indices from all-time highs. For On the other hand, the safe-haven appeal of the Dollar was offset by US bond yields that accompanied the decline in stocks.”
“The yield on the 10-year US Treasury bond fell to 4.03% after remaining in a range of 4.06-4.12% in the previous two sessions. San Francisco Fed President “Mary Daly downplayed recent nonfarm payrolls and CPI inflation data, which were better than expected.”
“As a renowned Fed labor economist, Daly believed the U.S. labor market was no longer a major source of inflationary pressures, adding that businesses were finding it difficult to pass on price increases. Despite the 50 basis point cut “As of last month, interest rates remained restrictive and were far from neutral, working to reduce inflation to its 2% target.”
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.
