US Greenback Outlook Brightens Amid Rising Yields, Volatility

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US Greenback Outlook Brightens Amid Rising Yields, Volatility

USD PRICE OUTLOOK: US DOLLAR STRENGTH SPURRED BY RISING TREASURY YIELDS & MARKET VOLATILITY US Greenback bulls have despatche


USD PRICE OUTLOOK: US DOLLAR STRENGTH SPURRED BY RISING TREASURY YIELDS & MARKET VOLATILITY

US Greenback bulls have despatched the Buck rebounding greater over the previous couple of buying and selling periods. After closing at contemporary two-year lows final Tuesday, the DXY Index has since gained about 1.2% and at the moment hovers at three-week highs. The inflow of broad-based energy throughout USD worth motion seems catalyzed by surging Treasury yields. Rising market volatility and demand for safe-haven currencies may very well be exacerbating US Greenback shopping for stress as effectively.

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DXY – US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (22 OCT 2020 TO 11 JAN 2021)

DXY Index Price Chart US Dollar Technical Forecast

Chart by @RichDvorakFX created utilizing TradingView

The most recent US Greenback rebound try is earmarked by advances during the last four-straight buying and selling periods. Although spectacular, the newly cast bullish short-term development might wrestle to achieve traction with key technical obstacles looming overhead. US Greenback energy fizzled out because the DXY Index probed its higher Bollinger Band, and resistance posed by the 91.10-price degree has potential to ship the Buck recoiling decrease. That mentioned, eclipsing the 38.2% Fibonacci retracement degree highlighted on the chart above would possibly inspire US Greenback bulls to make a push towards the 50-day easy shifting common.

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USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)

USD Price Chart Outlook US Dollar Implied Volatility Trading Ranges EURUSD GBPUSD USDJPY AUDUSD USDCAD

US Greenback implied volatility readings proceed creeping greater into the brand new yr. This may very well be because of elevated uncertainty in regards to the dominant development steering USD worth motion because the sharp spike in Treasury yields undermines the broader weak US Greenback narrative. Trying forward, merchants would possibly maintain shut tabs on the barrage of Fed-speak from FOMC officers scheduled all through the week along with an anticipated announcement from president-elect Joe Biden outlining the small print of his stimulus bundle proposal.

Maintain Studying – US Greenback Forecast: EUR/USD, GBP/USD Underneath Strain

— Written by Wealthy Dvorak, Analyst for DailyFX.com

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