MUFG’s Lloyd Chan notes that elevated US yields and increased expectations of further Federal Reserve (Fed) tightening are supporting the US Dollar (USD) in the near term. The 2-year and 10-year yields remain high, and markets are pricing a higher probability of Fed action by year-end.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining steady after registering modest losses in the previous day and hovering around 99.10 during the Asian hours on Thursday.
Dow Jones futures rise 0.30% to near 49,950 during the European hours on Wednesday, ahead of the United States (US) regular opening. Meanwhile, the S&P 500 advance 0.19% to near 7,480, and the Nasdaq 100 futures gain 0.41% toward 29,600.