USD Index set to test and breach the YTD high at 103.82 – MUFG
Source Fxstreet
US Dollar Index (/DXY) edges higher above 103.50 following strong GDP growth in the US. Economists at MUFG Bank analyze Dollar’s outlook.
USD upside potential as growth outperforms
We now go into next week’s FOMC meeting on the back of a much stronger GDP print but still compelling evidence of disinflation.
The tone from Fed Chair Jerome Powell is likely to remain cautious on near-term rate cuts being delivered but just like with the ECB on Thursday, a more favourable tone on inflation could be enough to keep alive expectations of a cut in March.
The near-term US Dollar bias remains to the upside though and we look set to test and breach the year-to-date high in DXY recorded on Tuesday at 103.82.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
ECB Policy Outlook for 2026: What It Could Mean for the Euro’s Next MoveWith the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
With the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
My Top 5 Stock Market Predictions for 2026Five 2026 market predictions written in a native, news-style voice: AI’s winners and losers, broader sector leadership, dividend demand, valuation cooling as the Shiller CAPE sits at 39 (Dec. 31, 2025), and quantum-computing bursts—while keeping all original facts and numbers unchanged.
Five 2026 market predictions written in a native, news-style voice: AI’s winners and losers, broader sector leadership, dividend demand, valuation cooling as the Shiller CAPE sits at 39 (Dec. 31, 2025), and quantum-computing bursts—while keeping all original facts and numbers unchanged.
Silver (XAG/USD) continues to rise parabolically, up more than 5%, trading above the $80.00 threshold a troy ounce, despite rising US Treasury yields and a strong US Dollar.
Discover the best Japanese stocks to buy, including AI semiconductor leaders, Buffett-backed trading houses, and undervalued Japan stocks benefiting from corporate reforms and yen trends.
Gold (XAU/USD) attracts buyers for the second consecutive day and surges past the $4,100 mark to hit a nearly two-week high during the Asian session on Wednesday.
Related Instrument
