The news is by your side.
AED
$0.27
-0.88%
AFN
$0.01
-0.88%
ALL
$0.01
-0.88%
AMD
$0.00
-0.88%
ANG
$0.56
-0.88%
AOA
$0.00
-0.88%
ARS
$0.01
-0.88%
AUD
$0.71
-1.09%
AWG
$0.56
-0.88%
AZN
$0.59
-0.88%

US Dollar Index Price Posts Mild Gains as Risk Appetite Reduces


  • DXY holds the previous day’s recovery from a multi-day low.
  • Geopolitics and Omicron support the demand for the dollar as safety.
  • An empty calendar, a year-end liquidity crisis, and the lifting of restrictions on Japanese bonds are added to the trading filters.

During the morning trading hours of Friday in Asia, the US Dollar Index (DXY) price rose for the second straight day to reach an intraday high of 96.05.

Are you interested to learn more about Nigerian forex brokers? Check our detailed guide-

Given the weak liquidity at the end of the year, the dollar index reflects the cautious market sentiment. The main catalysts are mixed concerns over the South African version of Covid, Omicron, and political headlines regarding Iran, China, and Ukraine.

As of Tuesday, Reuters’ record of seven-day average new Coronavirus cases in the United States reached 290,000 for the second straight day. The same is true for Europe, Australia, and the UK, while some Asian countries reported COVID outbreaks. The same prompt health experts and the World Health Organization (WHO) to issue warnings about year-end celebrations.

A launch by Iran into space undercuts earlier optimism about a denuclearization deal with world leaders. The Chinese and Hong Kong governments disapprove of US efforts to free Hong Kong journalists for the same reason. Reuters reported that US President Joe Biden and Russian counterpart Vladimir Putin warned each other on Thursday about escalating tensions over Ukraine, leading to a breakdown in relations between the two countries.

More reliable data from the US, along with a high 10-year break-even inflation rate from the Federal Reserve Bank of St. Louis (FRED), contributed to DXY’s recovery the day before. Initial jobless claims fell from 208,000 to 198,000 in the week ending December 24. Furthermore, in December, Chicago’s purchasing managers’ index rose from 62.0 to 63.1. S&P 500 futures lost 0.35% at the latest, while Wall Street indices posted moderate losses.

DXY traders may see a lackluster end of 2021, but the bulls may still hold the reins amid the warlike sentiment from the Federal Reserve and hopes for further stimulus from the Biden administration.

Are you interested to learn more about Islamic forex brokers? Check our detailed guide-

US Dollar index price technical analysis: SMAs to cap gains

US dollar index price

The 4-hour chart shows that the US Dollar index attempted to recover, but gains remained capped by the key SMAs confluence around 96.20 area. The ranging pattern is intact for the index, and there is no clear clue for the bulls or bears here.

Looking to trade forex now? Invest at eToro!

68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.



Read More : US Dollar Index Price Posts Mild Gains as Risk Appetite Reduces

You might also like
Leave A Reply

Your email address will not be published.