Home›Forex›Major Pairs›Dollar rally stalls near 2-month high as yields and oi…

Dollar rally stalls near 2-month high as yields and oil retreat

The DXY is pressing into the 101.63 to 101.80 resistance zone after the 10-year Treasury yield pulled back from about 5.24% and oil softened, ahead of core PCE, ISM and nonfarm payrolls.

Reported · Written up by our desk · Major Pairs

The dollar index, DXY, rose to 101.30 and is testing the 101.63 to 101.80 resistance zone near a two-month high, but the rally is losing momentum, according to Action Forex.

Action Forex said two near-term tailwinds weakened as the 10-year Treasury yield retreated after testing the 5.24% area and oil also pulled back, removing some marginal support for higher Fed expectations.

The outlet added that while roughly 70% probability of an October Fed hike is already priced, this week’s data sequence, including core PCE on Wednesday, ISM Manufacturing on Thursday, and nonfarm payrolls on Friday, is now expected to validate tightening that is already embedded in markets rather than just keep the possibility alive.

Action Forex concluded that the dollar remains firm near its two-month high, but with yields and oil no longer adding momentum, DXY still needs fundamental confirmation to break through resistance.

Latest closeDollar index 101.25 ▲0.3%

More like this

Sources