- The index adds to Friday’s rebound and is back targeting 102.00.
- US yields continue to march north and support the dollar.
- New York’s Empire State Index surprised to the upside in April.
The US Dollar Index (DXY)which tracks the dollar against a group of its main competitors, extends Friday’s rebound to near 102.00, the mark touched earlier in the week.
USD Index Supported by Yields and Rate Hike Bets
The index is now trading on firmer footing, brushing the key barrier of the 102.00 zone on continued selling bias in the risk universe, while the advance in US yields across the curve is also helping the rally diary.
Meanwhile, bets on a 25 basis point rate hike by the Federal Reserve at the May 3 meeting continue to rise and appear supported by the Fed’s hawkish rhetoric, while still elevated inflation also appears maintain a prudent stance among investors.
On the US agenda, New York’s Empire State Manufacturing Index improved to 10.8 in the current month. Later in the session, the NAHB housing market index and TIC flows will be released.
What to expect from the dollar
The dollar bullish correction remains on track to challenge the key 102.00 barrier on Monday.
Meanwhile, the sharp decline in the dollar since March has been underpinned by a pick-up in perceptions that the Federal Reserve could pause its current tightening cycle right after the May meeting.
However, ongoing disinflation, emerging weakness in some fundamentals, and lingering concerns surrounding the banking sector continue to weigh against a turn in the Fed’s normalization process.
technical levels
Now, the index advances 0.31% to 101.89 and the next resistance level emerges at 103.05 (monthly high from April 3) seconded by 103.53 (100-day SMA) and then 105.11 (weekly high from March 15). On the flip side, a break of 100.78 (Apr 14 low) would open the door to 100.00 (psychological level) and ultimately 99.81 (Apr 21, 2022 weekly low).
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.