US Dollar Index Challenges Daily Lows Near 95.50

Get real time updates directly on you device, subscribe now.

  • DXY trades under pressure and flirts with 95.50.
  • US yields correct lower and contribute to the weakness of the dollar.
  • US housing starts and building permits surprised to the upside.

The US dollar index (DXY), which measures the dollar against a pack of its major rival currencies, is still trading in negative territory around 95.50 after the opening bell on Wall Street on Wednesday.

The index is under pressure after rallying to the 95.80/85 zone earlier in the week, all against the backdrop of the strong rebound in US yields, which saw yields along the curve renew the uptrend and recorded new highs.

Aside from rising yields, the constructive view on the dollar is also supported by the prospect of the Fed’s tightening cycle starting as early as the March meeting, along with the perception that the balance sheet sell-off will also It could start sooner than many anticipate.

The US calendar on Wednesday showed results in the housing sector that beat expectations in December after building permits increased by 1,873 million units, or 9%, and housing starts increased by 1,702 million units, or 1.4%. Earlier in the session, MBA mortgage applications rose 2.3% in the week to January 14.

Technical levels

Now, the index is shedding 0.19% at 95.54 and a break above 95.83 (weekly high Jan 18) would open the door to 96.46 (high Jan 4, 2022) and finally 96.93 (high Nov 24). of 2021). On the other hand, the next downside barrier emerges at 94.75 (100-day SMA), followed by 94.62 (Jan 14, 2022 low) and then 93.27 (Oct 28, 2021 monthly low).

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.

buy kamagra buy kamagra online $255 payday loans online same day no denial payday loans direct lenders only