The FX PostThe FX Post
    What's Hot

    FlatQube Trade Volume, Trade Pairs & Trust Score

    November 7, 2022

    Step Guide to Winning Forex Trading

    September 19, 2022

    Relationship Between Currency Risk and Foreign Bonds

    September 2, 2022
    The FX Post The FX Post
    • Best Fx Robots
    • Forex
      • News
      • Forex 101
      • Forex Forecasts
      • Broker Reviews
    • Crypto
      • News
      • Crypto 101
      • Crypto Forecasts
      • Crypto Reviews
    • Indices
      • News
      • Analysis
      • Commodities
      • Reviews
    • Automated Trading
      • Forex Signals
      • Forex Robots
      • Copy Trading
    • Top
      • Best Forex Robots
    The FX PostThe FX Post
    Home ยป DXY Price Outlook: Firm Yields and Hawkish FOMC to Push Towards 97.00
    Analysis Indices

    DXY Price Outlook: Firm Yields and Hawkish FOMC to Push Towards 97.00

    January 6, 20223 Mins Read
    Facebook Twitter Pinterest LinkedIn Reddit
    Share
    Facebook Twitter LinkedIn Pinterest Reddit

    The US Dollar Index (DXY) rose again and returned to the 96.40 level on Thursday.

    • Currently trading at 96.40, the DXY is past Wednesday’s pullback.
    • Since the FOMC protocol was released, US yields have continued rising.
    • The initial jobless claims, the ISM for the non-manufacturing sector, and the trade balance figures will provide further fresh stimulus to the market. 

    US dollar index rose amid firm yields ahead of key data releases.

    Markets are invaded by algorithms
    Secure your passive income with algo-based trading systems
    Learn more

    DXY fundamental analysis: rising yields and Hawkish FOMC to support

    Market participants continue to digest the hawkish nature of the FOMC minutes released late Wednesday as the index reverses the retracement seen in the previous session towards 96.40 in the second half of the week.

    As a matter of fact, the December minutes suggest that March will be another hectic event, leading to speculation about three or four rate hikes in the face of a steadily improving labor market and rising inflation. As a result, a rate hike is almost 70% likely at the March 16 meeting, according to the CME FedWatch Tool.

    In response to Wednesday’s release of the minutes, US yields rose along the curve, which caused the dollar to make some gains on Thursday and return to positive territory.

    Today is an interesting day for the USA. The ISM Non-Manufacturing report is in the spotlight, along with regular weekly claims reports, trade totals, and production orders for November.

    What to look for in US dollars?

    The index trades above 96.00, helped by yield growth, particularly after the FOMC report (Wednesday) conveyed a more restrictive stance. While markets slowly return to normal, the dollar will likely benefit from the Fed’s intention to raise rates at the end of the year amid persistently high inflation, a favorable outlook of Fed, higher yields, and stable performance in the US economy.

    Key events in the US this week 

    • Initial Jobless Claims
    • ISM Non-Manufacturing and Manufacturing Orders
    • Trade Balance (Thursday) 
    • Non-farm Payroll, Unemployment Rate (Friday)

    Some important hurdles that may hamper the rise of DXY

    • The beginning of the Fed’s tightening cycle 
    • US-China trade conflict during the Biden administration
    • Debt limit problem
    • Possible geopolitical explosion against Russia and China

    DXY technical analysis: bulls supported by SMAs, candles

    The DXY dollar index trades in a consolidating range above the 96.00 level. The price remains supported by the 20-day SMA ahead of the 50-day SMA. The rectangular pattern suggests an upcoming trading opportunity on either side. However, the technical indicators show clues of a bullish breakout. In the last four candles, we have one bullish engulfing bar and a bullish pin bar. Both are strong bullish signals. If the bullish breakout occurs, we may see a test of recent swing highs at 97.00.

    DXY price chart
    DXY price chart

    Alternatively, if we see a bearish breakout below 95.50, we can see a slip towards 95.00 ahead of a double bottom at 94.60. The same level has coincided with the 200-day SMA as well. 

    Markets are invaded by algorithms
    Secure your passive income with algo-based trading systems
    Learn more
    DXY DXY Forecast
    Share. Facebook Twitter Pinterest LinkedIn Reddit

    Related Posts

    European Central Bank

    Christine Lagarde Solidifies ECB’s Message on Combating Inflation

    June 28, 2022
    Salesforce-backed front

    Salesforce-Backed Front Valued at $1.7 Billion in Financing Round

    June 28, 2022
    G7 countries to hit Russia

    G7 Countries to Hit Russia With Brand-New Assents

    June 27, 2022
    China's clean power growth

    China’s Clean Power Growth Outlook for 2022 Maintains Getting Bigger

    June 24, 2022
    Add A Comment

    Leave A Reply Cancel Reply

    51  −    =  49

    Best FX Post
    Best Forex Robots (Expert Advisors) 2021

    Best Forex Robots (Expert Advisors) 2022: Passive Income From Algo Trading Systems

    July 7, 2021

    Top 10 Lending Platforms for Crypto Loans

    June 1, 2022
    forex eurusd trading charts

    Top 10 Best Forex Brokers In All Times

    June 1, 2022
    Recent Posts
    • FlatQube Trade Volume, Trade Pairs & Trust Score
    • Step Guide to Winning Forex Trading
    • Relationship Between Currency Risk and Foreign Bonds
    • Best Social & Copy Trading Platforms
    • Bitcoin Dips Listed Below $20,000 With Fundstrat Considering ‘Last Washout’
    Featured Reviews
    TechBerry

    TechBerry Review: Pros, Cons, Recommendations

    September 18, 2021
    CryptoHero

    CryptoHero Review: Pros, Cons, Recommendations

    June 3, 2022
    Bitsgap

    Bitsgap Review: Pros, Cons, Recommendations

    April 29, 2022
    Categories
    • Analysis
    • Automated Trading
    • Best FX Post
    • Broker Reviews
    • Commodities
    • Copy Trading
    • Crypto
    • Crypto 101
    • Crypto Bots
    • Crypto Forecasts
    • Crypto Reviews
    • Forex
    • Forex 101
    • Forex Forecasts
    • Forex Robots
    • Forex Signals
    • Guides
    • Indices
    • News
    • News
    • News
    • Reviews
    • Reviews
    • Uncategorized
    Twitter BlogLovin
    © 2023, Thefxpost.com.
    • Contact

    Type above and press Enter to search. Press Esc to cancel.