- US Dollar Index remains sidelined after snapping two-day downtrend.
- Firmer US data, challenges to sentiment underpin DXY rebound.
- Pullback in Treasury bond yields, holiday mood restricts immediate upside.
- Final readings of US Q3 GDP, PCE details eyed for clear directions.
US Dollar Index (DXY) remains indecisive around 104.20, struggles to extend the previous day’s rebound during Thursday’s sluggish Asian session. In doing so, the greenback’s gauge versus the six major currencies portrays the market’s holiday mood, as well as the cautious sentiment ahead of this week’s critical data, namely the US Dollar Index struggles to defend recovery above 104.00 ahead of US GDP.
The DXY cheered upbeat US data and challenges to sentiment emanating from Russia to print the first daily gain in three the previous day.
That said, the US Conference Board’s (CB) Consumer Confidence jumped to the eight-month high of 108.3 for December, compared to the market forecasts of 101.0 and the revised prior readings of 101.40. On the other hand, Ukrainian President Volodymyr Zelensky’s US visit and Russian President Vladimir Putin’s readiness to increase the country’s military potential challenge the risk appetite.
Alternatively, a pullback in the US Treasury bond yields joined risk-positive news from China to probe the US Dollar Index buyers. The US 10-year Treasury bond yields remain sidelined near 3.66% after retreating from the monthly high of 3.72% the previous day. On the other hand, the US two-year bond coupons remain pressured around 4.22% after a two-day downtrend.
Recently, hopes of faster economic recovery in Germany and mixed comments from the European Central Bank (ECB) official Mario Centeno join mixed remarks from US President Joe Biden and Ukrainian President Zelensky to restrict the DXY moves amid mixed mood. While portraying the mood, the S&P 500 Futures print mild gains amid sluggish yields and mixed performance in the Asia-Pacific markets.
Risk catalysts could direct intraday DXY moves ahead of the US GDP and Core PCE data for Q3. US GDP is expected to confirm 2.9% Annualized growth in Q3, while the Core PCE is anticipated to also meet the initial forecasts of 4.6% QoQ during the stated period. Also important will be Friday’s Core PCE Price Index for November, the Fed’s preferred inflation gauge.
Technical analysis
A five-week-old bearish channel restricts DXY moves between 102.90 and 104.60.
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
Gold moves to record highs past $3,340 Premium
Gold now gathers extra steam and advances beyond the $3,340 mark per troy ounce on Wednesday, hitting all-time highs amid ongoing worries over escalating US-China trade tensions, a weaker US Dollar and lack of news from Powell's speech.
Australian Dollar receives support from improved global risk mood, US Retail Sales eyed
The Australian Dollar extends its winning streak against the US Dollar for a sixth consecutive session on Wednesday, with the AUD/USD pair holding firm after the release of Australia’s Westpac Leading Index. The index’s six-month annualised growth rate eased to 0.6% in March from 0.9% in February.
EUR/USD remains in a consolidative range below 1.1400
EUR/USD navigates the latter part of Wednesday’s session with marked gains, although another test of the 1.1400 level remained elusive. The strong bounce in spot came on the back of a marked move lower in the US Dollar, which remained apathetic following the neutral stance from Chair Powell.
Bitcoin stabilizes around $83,000 as China opens trade talks with President Trump’s administration
Bitcoin price stabilizes around $83,500 on Wednesday after facing multiple rejections around the 200-day EMA. Bloomberg reports that China is open to trade talks with President Trump’s administration.
Future-proofing portfolios: A playbook for tariff and recession risks
It does seem like we will be talking tariffs for a while. And if tariffs stay — in some shape or form — even after negotiations, we’ll likely be talking about recession too. Higher input costs, persistent inflation, and tighter monetary policy are already weighing on global growth.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.