US DOLLAR OUTLOOK: USD/TRY PRICE VOLATILITY EXPLODES TO RECORD HIGH, DXY INDEX STILL EYEING TREASURY YIELDS
The broader US Greenback edged barely decrease on Monday largely to EUR/USD energy. This was considerably offset by US Greenback beneficial properties towards its Canadian Greenback peer. On stability, the DXY Index dropped a mere -0.15% alongside a modest pullback in US Treasury yields. US Greenback bulls have additionally been struggling to surmount nearside resistance posed by the 92.00-handle, however the short-term 8-day easy shifting common appears to be serving to preserve the DXY Index afloat.
DXY – US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (14 OCT 2020 TO 22 MAR 2021)
Chart by @RichDvorakFX created utilizing TradingView
That stated, broader US Greenback energy may resume if Treasury yields rebound again larger. This may convey the negatively-sloped 200-day easy shifting common into focus as a possible topside goal for US Greenback bulls. Then again, slipping under the 8-day easy shifting common might inspire US Greenback bears to have one other have a look at final week’s lows across the 90.30-price degree.
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USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)
US Greenback implied volatility readings look like creeping larger judging by the most recent in a single day readings. Looking forward to Tuesday’s buying and selling session, we see a string of speeches from FOMC officers, along with a congressional testimony from Fed Chair Powell, scheduled out on the DailyFX Financial Calendar. Commentary from key Federal Reserve personnel may weigh on the path of Treasury yields and the US Greenback. Although not listed on the desk above, USD/TRY in a single day implied volatility has rocketed to a record-high at 70%. This follows a sharply weaker Lira in response to Turkish President Erdogan eradicating central financial institution governor Naci Agbal from his submit over the weekend.
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— Written by Wealthy Dvorak, Analyst for DailyFX.com
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