US Dollar (DXY) Daily Price and Analysis
- US dollar[1] basket (DXY) within touching distance of 100.
- The 10-year US Treasury yield nears 2.70%.
The US dollar continues to appreciate across the board with the greenback’s strength sending many US dollar pairs to near multi-month and multi-year highs. USD/JPY[2] is within a point of levels last seen in August 2015, GBP/USD[3] continues to test 1.3000, a level that guards lows last seen in November 2020, while EUR/USD[4] is less than 70 pips away from lows last seen in May 2020. With the Federal Reserve looking to raise interest rates by a further 225+ basis points in 2022, according to market pricing, and with other central banks playing catch up in the fight against inflation, the US dollar looks set to appreciate further over the coming months.
The US Treasury market continues to price-in additional US rate hikes with the interest-rate sensitive UST 2-year now trading with a yield of 2.52%, up from 0.15% in June 2021, while the benchmark UST 10-year is offered with a yield of 2.68%, a level last seen in early 2019. These yields will continue to prop up the US dollar in the months ahead.
The daily US dollar basket (DXY) chart now shows the greenback breaking out of a consolidation range that has capped the upside for the last month. Today’s open above the range confirms this bullish sentiment and a close above the prior high will give the move additional credibility. The dollar basket trades above all three simple moving averages, reinforcing the push higher and the 20-dma offers additional support in the event of any short-term sell-off.
US Dollar Daily Price Chart April 8, 2022
The weekly DXY chart shows that a
