FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews

US Dollar Index gathers traction and tests 93.40

27 September 2021

The greenback, when tracked by the US Dollar Index (DXY), starts the week on the same upbeat mood that finished the last one and re-visits the 9240/50 band on Monday. The index advances for the second session in a row on Monday and approaches the 93.50 area on the back of higher yields and broad-based softer note in the risk-associated universe.

Indeed, yields of the US 10-year benchmark note pushe higher and gyrate around the 1.47% level, area last traded in late June. In the short-end of the curve, yields of the 2-year note climb to the 0.28% zone, last observed in April 2020.

Furthermore, the renewed and moderate pick-up in US yields follow the hawkish tone from Chief Powell at the latest FOMC event (Wednesday). In the same line, Cleveland Fed L.Mester (2022 voter, hawkish) advocated on Friday for the start of the tapering process in November and finish in mid-2022.

Later in the US data space, Durable Goods Orders for the month of August are due seconded by the Dallas Fed Manufacturing Index. In addition, speeches by NY Fed J.Williams (permanent voter, centrist), FOMC Governor L.Brainard (permanent voter, dovish) and Chicago Fed C.Evans (voter, centrist) will also be iin the limelight throughout the session.

What to look for around USD

The index flirts with recent tops in the 93.40/50 band, always with the attention on higher yields. The improved mood in the buck follows the unexpected hawkish message from Chief Powell while market participants continue to pencil in an interest rate hike by end of 2022. Positive results from US fundamentals coupled with alleviating concerns regarding the progress of the Delta variant should also remain supportive of a stronger dollar in the near/medium term.

Key events in the US this week: Durable Goods Orders (Monday) – Advanced Goods Trade Balance, CB Consumer Confidence, Powell’s Testimony (Tuesday) – Powell’s speech (Wednesday) – Final Q2 GDP, Initial Claims (Thursday) – PCE, Final Manufacturing PMI, ISM Manufacturing, Personal Income/Spending, final Consumer Sentiment (Friday).

Eminent issues on the back boiler: Biden’s multi-trillion plan to support infrastructure and families. US-China trade conflict under the Biden’s administration. Tapering speculation vs. economic recovery. Debt ceiling debate. Geopolitical risks stemming from Afghanistan.

US Dollar index relevant levels

Now, the index is gaining 0.17% at 93.43 and a break above 93.52 (monthly high Sep.23) would open the door to 93.72 (2021 high Aug.20) and then 94.30 (monthly high Nov.4 2020). On the flip side, the next down barrier emerges at 92.98 (weekly low Sep.23) seconded by 92.73 (55-day SMA) and finally 91.94 (monthly Sep.3).



Stock Futures Soft Ahead of US Durable Good Data In Focus
Stock Futures Soft Ahead of US Durable Good Data In Focus

As for European markets, we expect a somewhat milder start, with the primary emphasis being the UK Autumn Budget, which is scheduled to begin following PMQs...

27 Oct 2021

Demand outstripping supply drives oil price action
Demand outstripping supply drives oil price action

Supply and demand is such a simple concept – but it’s one that continues to have the biggest influence on current oil prices. At the start of the week, the WTI...

26 Oct 2021

American futures are trading higher
American futures are trading higher

Investors are optimistic regarding the earnings reports of technology companies but should weigh their potential gains against risks of rising coronavirus cases and surging inflation...

26 Oct 2021

Not a fossilised relic just yet
Not a fossilised relic just yet

With the buzz around renewable energy and EVs following the announcement of Biden’s Green New Deal, oil and other traditional fossil fuels fell out of favour with investors...

25 Oct 2021

Looking ahead as the event risk is dialled up
Looking ahead as the event risk is dialled up

As FX traders open up the new week selling the TRY towards 10.00, this week earnings take centre stage, with the US tech giants at the heart married with some important...

25 Oct 2021

The Euro is looking strong
The Euro is looking strong

EURUSD is supported by the risk attitude. The major currency pair is feeling the global risk attitude and trying to keep its positive momentum. The current quote for...

25 Oct 2021

Editors' Picks

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
AvaTrade information and reviews
LegacyFX information and reviews

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.