- January 11, 2023
- Posted by: Stratford Team
- Category: Economy
The U.S. dollar is on the verge of its first “death cross” in two-and-a-half years as a rally that peaked in September with the buck at its highest level in more than two decades continues to unwind.
In markets parlance, a death cross occurs when the 50-day moving average of a given asset or currency pair moves below the 200-day moving average.
It’s considered by technical analysts to be a sign that a given asset or currency could be headed even lower — although historically this isn’t always the case.
The ICE U.S. Dollar Index
DXY,
+0.30%,
a gauge of the buck’s strength against a basket of rivals, sported a 50-day moving average of 106.24 early Tuesday, according to FactSet data. That’s within a few pips of the 200-day moving average, which stood at 106.13.
The last time the dollar index saw this pattern emerge was in early July 2020, according to FactSet data.
The index…
