USD PRICE OUTLOOK: US DOLLAR ADVANCES DESPITE SLIPPING TREASURY YIELDS, BIDEN SET TO UNVEIL STIMULUS PACKAGEUS Greenback pushed i
USD PRICE OUTLOOK: US DOLLAR ADVANCES DESPITE SLIPPING TREASURY YIELDS, BIDEN SET TO UNVEIL STIMULUS PACKAGE
- US Greenback pushed increased on Wednesday regardless of a deeper pullback in Treasury yields
- USD value motion eyes particulars of president-elect Biden’s stimulus package deal proposal
- The DXY Index seems to be to have discovered assist from its 20-day easy transferring common
The US Greenback notched a modest 0.3% acquire on Wednesday as measured by the broader DXY Index. The advance got here regardless of one other decline in yields corresponding with sturdy demand for long-dated Treasuries. US Greenback power was seen primarily towards the Euro as a flareup in Italian political threat steered EUR/USD value motion 65-pips decrease on the session.
DXY – US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (21 OCT 2020 TO 13 JAN 2021)
Chart by @RichDvorakFX created utilizing TradingView
The broader US Greenback rebound paused yesterday, however the DXY Index appears to have discovered technical assist from its 20-day easy transferring common close to the 90.00-handle. Breaching this space of buoyancy may open up the door for US Greenback bears to push the Buck towards year-to-date lows. Resistance nonetheless seems to be underpinned by the higher Bollinger Band in addition to the 38.2% Fibonacci retracement degree of the 02 November to 06 January buying and selling vary.
Eclipsing these technical obstacles may encourage US Greenback bulls to set their sights on the 100-day easy transferring common. The MACD indicator means that upward momentum could also be accelerating. That stated, it might be tough for the broader US Greenback to maintain its rebound with out Treasury yields rising additional within the absence of demand for safe-haven currencies.
US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)
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Looking forward to Thursday’s buying and selling session, president-elect Joe Biden is ready to unveil particulars on his fiscal stimulus plans, which may weigh on USD value motion. Biden is anticipated to announce a stimulus package deal proposal with a ‘excessive price ticket’ rumored to be round $1.3-trillion. Seeing that Biden is more likely to discover sufficient assist for his plans from congress set to be managed by democrats, the larger the stimulus plan the extra possible Treasury yields may lengthen increased. In flip, and contemplating current market actions, this might assist bolster the US Greenback.
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— Written by Wealthy Dvorak, Analyst for DailyFX.com
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