US Dollar Index higher, on exploding US Treasury bond yields. Await US Federal Reserve Bank Chairman, Powell.
US dollar Index (DXY) Key Points
The US dollar climbed to a top near 106.60, but settled about 106.55, and appears that it is developing solid support. Which is close to the 20-day (SMA). The Federal Reserve’s Beige Book revealed nothing unexpected in regards to its Sept economic data assessment.
The 10-year US Treasury bond yield is just around five percent.
Powell addresses the Economic Club of the City of New York.
The sellers currently have total authority over the US Treasuries market. Driving rates along the spectrum considerably higher. Aside over the US 5 – year & 10-yearr, debt instruments with maturities that vary from a month to thirty years. Both are all ‘five handles’ as purchasers remain on the side of caution and allow the selling process to go on.
US Treasury Yields
| Name | Price Change | Yield | ||
| U.S. 1 Year Treasury Bill | -0.015 | 5.452% | ||
| U.S. 2 Year Treasury Note | -0.020 | 5.251% | ||
| U.S. 3 Year Treasury Note | -0.060 | 5.090% | ||
| U.S. 5 Year Treasury Note | -0.086 | 4.989% | ||
| TICKER | Asset | YIELD | CHANGE | |
| US10Y | U.S. 10 Year Treasury | 4.939 | 0.037 | |
| US30Y | U.S. 30 Year Treasury | 5.02 | 0.026 | |
During this week has witnessed a bevy of Fed officials provide their perspectives on the nation’s economy. And a consistent theme being the rates of interest will probably to continue at present rate for a greater amount of time. Current US numbers suggest that the nation’s economy is still recovering well.
With the third quarter GDP currently expected to be at or above 4 percent. Having inflation dropping, yet not at a sufficient pace to satisfy the Federal Reserve. Chairman Powell will almost certainly restate that the US central bank is committed to fighting inflation. The following cause of turbulence for the US currency will be Chair Powell’s address before the economic Council of NY
According to the newest CME FedWatch Tool, American mortgage rates will stay unchanged throughout the initial half of the year 2024. Alongside the initial decrease occurring during the end of July gathering, although only marginally.
Having rising off the 106.00 level a few days ago, the greenback is rising for a second session in succession. The technical picture for the USD continues to be bullish, with 106.84 level. Serving as the subsequent point of immediate barrier. Beyond this point, 107.36 enters into effect.
Technical Perspective
The dollar is approaching the point where it may begin to suffer. The (DXY) is beginning to drift. With no clear breakout to the gain or fall. The reality that US a ten- prices are approaching 5 percent is a warning indication. As 5 percent is typically seen to be a psychological threshold beyond which the economy may fail to satisfy its finance demands.
