- The US Dollar Index edges down some 0.04% as US bond yields rally.
- The US 10-year Treasury yield advances sharply some five basis points at 1.47%.
- DXY Technical outlook: An upside break above an ascending triangle target 98.00.
The US Dollar Index, also known as DXY, which measures the greenback’s performance against a basket of six rivals, barely falls some 0.04%, sitting at 96.48 during the New York session at the time of writing. The market sentiment is upbeat, with major US equities rising between 1.60% and 2.80%.
The market mood improved as investors assessment that vaccines helped tame the Omicron virus outbreak. Additionally, per Bloomberg’s report, the US FDA is poised to authorize pills from Pfizer and Merck to treat Covid-19 as soon as this week.
In the US bond market, the Treasury yields rise in the whole curve. The 2s, 5s, and 10s increase between four and six basis points, sitting at 0.6685%, 1.2238%, and 1.474%. The long maturity of the yield curve, with the 20s, and 30s, rise between two and three basis points, currently at 1.9043% and at 1.875%.
US Dollar Index (DXY) Price Forecast: Technical outlook
The US Dollar Index daily chart depicts the strong dollar narrative keeps in place. The price is above the central Pitchfork’s uptrend channel, which confluences with the ascending triangle on an uptrend. At press time, the DXY is testing the top-trendline of the ascending triangle on an uptrend, though earlier pierced the abovementioned reaching a daily low at 96.33.
To the upside, the first resistance would be the figure at 97.00. A breach of the latter would expose the June 30 high at 97.80, followed by the ascending triangle target at 98.00.
-637757185112461963.png)
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.
Recommended content
Editors’ Picks
EUR/USD pares gains to near 1.0450 ahead of Germany's IFO survey
EUR/USD pares gains to trade near 1.0450 in European trading on Monday, moving back toward two-year lows of 1.0332. The renewed weakness is due to a modest recovery n the US Dollar and the US Treasury bond yields. The focus shifts to German data and ECB-speak.
GBP/USD pulls back toward 1.2550 as US Dollar sell-off pauses
GBP/USD is falling back toward 1.2550 in the European session on Monday after opening with a bullish gap at the start of a new week. A pause in the US Dollar decline alongside the US Treasury bond yields weighs down on the pair. Speeches from BoE policymakers are eyed.
Gold price manages to hold above $2,650 amid sliding US bond yields
Gold price maintains its heavily offered tone through the early European session on Monday, albeit manages to hold above the $2,650 level and defend the 100-period Simple Moving Average (SMA) on the 4-hour chart. Scott Bessent's nomination as US Treasury Secretary clears a major point of uncertainty for markets.
Bitcoin consolidates after a new all-time high of $99,500
Bitcoin remains strong above $97,700 after reaching a record high of $99,588. At the same time, Ethereum edges closer to breaking its weekly resistance, signaling potential gains. Ripple holds steady at a critical support level, hinting at continued upward momentum.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.