- July 28, 2021
- Posted by: Stratford Team
- Category: Economy
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- DXY reverses the recent decline and retakes 92.50.
- US 10-year yields rebound past the 1.25% level.
- The FOMC event will be the salient point in the calendar.
The greenback regains some buying interest and manages to reverse the recent weakness, lifting the US Dollar Index (DXY) back above the 92.50 mark on Wednesday.
US Dollar Index looks to the Fed
After two consecutive daily pullbacks, including Tuesday’s multi-day lows around 92.30, the index embarks on a recovery to the 92.50/60 band following the opening bell in the old continent.
The leg higher in the dollar appears sponsored by the bounce in yields of the key US 10-year note to levels beyond 1.25%, all within the multi-session consolidative theme.
In the meantime, the cautious stance is poised to prevail among market participants and the dollar in light of the upcoming FOMC event, where QE tapering, inflation, employment and the general performance of the US economy…
