The dollar index, which tracks the greenback against a basket of currencies, slides to 3-year low on higher global rate outlook. Take a look at the 15 January Dollar Index Technical Analysis for more clues on DXY.
15 January, GKFX– The greenback finds no respite this Monday possibly on higher global rate outlook. The dollar index (DXY) hit a three-year low of 90.63 today as investors are likely pricing-in the heightened odds of policy tightening elsewhere – ECB, BOE, BOC, and BOJ. Also, speculation is on the rise that Fed would be forced to hit brakes due to (possible) untimely end of the current economic cycle.
- Dollar Index (DXY) hit a 3-year low of 90.63 today.
- Increased odds of faster tightening elsewhere hurts USD.
The higher global rate outlook is overshadowing the strong US economic data as seen on Friday. Further, the record highs in the US stocks aren’t helping the greenback either.
As of writing, the index is trading at 90.76 levels. Ahead in the day, the DXY could trade in the sideways manner around the session lows amid lack of fresh cues due to trading holiday in the US.
15 January Dollar Index Technical Analysis
A break below 90.00 (psychological level) would open up downside towards 89.17 (Mar. 2009 high) and 89.00 (psychological level). On the higher side, breach of resistance at 91.01 (September high) could yield corrective rally to 91.92 (May 2016 low) and 92.00 (zero levels).
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