US dollar continues to rise, harming the world’s markets. The housing market will be featured on Tuesday’s American economic calendar.

US dollar Key points

In an additional disparity push, the dollar pushed higher versus major currencies on Tuesday.

The housing sector will be featured on Tuesday’s US economic calendar.

The index of the US dollar rises over 106.00 for the first time in ten months.

US dollar Spike and Bonds sell-off – Sign of a Recession Looming?

The US Dollar is once more raging across the capital markets.  Raising fears concerning what this may imply for markets by late 2023. Having US bond rates soaring to fresh highs. The rate disparity – alongside other currencies is obviously the key mover. As equities begin to fall with bonds sell off, doubts emerge about whether this is the beginning of the predicted downturn and harsh impact for the U.S. economy.

There is enough info to look into on Tuesday. Concerning the US housing market. Wherein stricter and rising lending constraints remain to come. The two the Housing Index of Prices and the index of consumer confidence are anticipated to be trend changing for the US dollar. Revelations from Washington could alter the contest. since a supplemental bill could be introduced on the House floor shortly thereafter Tuesday.

US Dollar strength extended by US Fed hawks

The dollar’s value was already backed by the premise that rates of interest are going to remain at exceptionally elevated levels. The evident possibility that prices may rise further will further strengthen enthusiasm towards the dollar.

At the moment being, that emotion seems so powerful that even the little matter of a likely US government outage cannot dim it.

Neel Kashkari, president of the Minneapolis US central bank, has asked for another interest-rate rise this year. In the meantime, JP Morgan CEO Jamie Dimon expressed concern that US interest rates may rise to 7 percent.

From the side of the economy, the US Redbook Index of the week ending the 22nd Sep is set to be released at 12:55 GMT on Tuesday. The gauge increased 3.6 percent in the week before.

Technical Analysis and Perspective

Following its surpass on Monday, the Dollar drives the (RSI) into overvalued zone. Investors remain intent on and concerned about the present and potentially lasting rate disparity among the US Fed and other major economies.  that could propel the US Dollar higher for more time. The (DXY), surpassed 106.00, setting a fresh ten-month top

The DXY starts over 106.00, but the overbought RSI could make it tough to maintain that level. Investors who wish to set a fresh 52-week high should be mindful that there is a long way to go before reaching 114.78. Instead, seek out 107.19, its Nov 30, 2022 top, being a subsequent profit objective amid the upswing.

On the negative side, the most current resistance level of 105.88 ought to be considered to be initially support. Nonetheless, it was only recently breached to the topside. Thus it is unlikely to be a major obstacle. Instead, expect 105.12 level to accomplish the work while keeping the DXY over 105.00 zone

USD vs other currencies preformance chart