United States Dollar Index weakens further amid correction in US bond yields
The US Dollar (USD) extends its decline against its major peers on Friday as United States (US) Treasury Yields correct after failing to extend the rally.
In the Asian trade, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.1% lower to near 102.02. The DXY faced significant selling pressure on late Thursday after failing to extend the rally beyond its yearly high of 102.54 posted earlier this year. 10-year US Treasury Yields have retreated to near 5.23% from its Thursday’s high of 5.35%.
Yields on US-backed securities came under pressure as oil prices cut gains after President Donald Trump ruled out fears of renewed military activities against Iran till Mid-term elections.
“We [US] will not be attacking Iran at any time prior to the Midterm Elections to be held in the United States on November 3
Going forward, the major trigger for the US Dollar will be the US Consumer Price Index (CPI) data for September, which will be released on Wednesday. The inflation is expected to have a significant impact on Federal Reserve’s (Fed) interest rate expectations.
Currently, the CME FedWatch tool shows that financial markets have priced in at least one interest rate hike in the remainder of the year.
US Dollar Index Technical Analysis
In the daily chart, Dollar Index Spot trades at 102.03, holding above the 20-day exponential moving average (EMA) at 101.24, which suggests a bullish near-term bias with the trend underpinned by dynamic support. The Relative Strength Index (14) at 67.91 hovers just below overbought territory, hinting that upside momentum remains strong but may be entering a more mature phase where further gains could be slower or prone to brief pauses.
On the downside, initial support is located at the 20-day EMA at 101.24, where a decisive break would weaken the bullish structure and open the door to a deeper corrective phase toward prior price congestion zones. Looking up, the yearly high at 102.54 is the major hurdle.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Adding insult to injury! Japanese electronics giant Nidec downgraded by UBS, stock price plunges over 9% and approaches an 11-month low
UBS has downgraded Nidec's rating from "Buy" to "Neutral" and lowered its target price from 2,800 yen to 2,400 yen, citing a more challenging market environment.
BUZZ - After an upgrade by Citi, Australia's QBE Insurance may see its best week in four months
On October 9, shares of Australian QBE Insurance Group (QBE.AX) continued their upward trend, rising 1.8% to AUD 24.805, reaching the highest level since August 5. The stock has gained approximately 4.2% this week and is on track for its best weekly performance since early June. Earlier this week, Citi noted in a report that the insurer stands out from its domestic peers due to its ability to achieve at least mid-single-digit, volume-driven gross written premium (GWP) growth while maintaining underwriting margins. The broker upgraded the stock's rating to "Buy" and raised its target price by 10.3% to AUD 26.70. The report also stated that QBE has currently reached a total premium income of USD 1.5 billions and is expected to increase to USD 2.5 billions in the medium term. Citi added that it remains optimistic about the stock thanks to enhanced earnings stability brought by prudent reserving. So far this year, QBE shares have risen about 25%.
Nvidia Stock Faces Critical Warning Sign. Is the AI Trade Breaking?
Deutsche Bank estimates the impact of rising interest rates: US major banks face capital pressure, and stock buybacks may collectively hit the brakes.
Deutsche Bank recently released an industry research report focusing on the capital pressure faced by large US banks amid a significant rise in interest rates expected in Q3 2026.
Crypto prices
More
