US Dollar flat ahead of record 2-year note auction – BBH

Fonte Fxstreet
23/04/2024 10:54

Analysts at BBH share their near-term outlook for the US Dollar.

Dollar rally should continue

"The dollar is trading flat ahead of a record 2-year note auction.  DXY is trading flat near 106.087 but remains on track to test the November 1 high near 107.113."

"The dollar rally should continue as data confirm persistent inflation and robust growth in the US  This backdrop along with upcoming heavy UST supply should keep upward pressure on US yields, which would be positive for the dollar.  We believe that while market easing expectations have adjusted violently this month, there is still room to go.  When the market finally capitulates on the Fed, the dollar should gain further."

"US yields remain elevated ahead of heavy supply.  The 2-year yield is trading at 4.99% and on track to test the October high near 5.26%, while the 10-year yield is trading near 4.61% and on track to test the October high near 5.02%.  Heavy supply could help push yields higher.  Treasury auctions a total of $183 bln in 2-, 5-, and 7-year notes this week.  The first leg is today with $69 bln of 2-year notes to be auctioned.  Bid/cover ratio was 2.62 at the previous auction, while indirect bidders took 65.8%. The auctions continue tomorrow with $70 bln of 5-year notes and end Thursday with $44 bln of 7-year notes." 

Isenção de responsabilidade: Apenas para fins informativos. O desempenho passado não é indicativo de resultados futuros.
placeholder
US Dollar trades mildly positive as markets stay cautious ahead of upcoming CPI dataThe US Dollar Index (DXY) is currently trading around the 105.35 mark, posting mild gains on Friday near the end of the trading week.
Fonte  Fxstreet
The US Dollar Index (DXY) is currently trading around the 105.35 mark, posting mild gains on Friday near the end of the trading week.
placeholder
Dollar Index Price Forecast: DXY falling within channelThe US Dollar Index price (DXY) is declining within a multi-month long rising channel after touching the top borderline and rolling over.
Fonte  Fxstreet
The US Dollar Index price (DXY) is declining within a multi-month long rising channel after touching the top borderline and rolling over.
placeholder
US Dollar sees mild gains following jobless claims, less hawkish PowellThe US Dollar Index (DXY) is trading mildly higher at 105.80.
Fonte  Fxstreet
The US Dollar Index (DXY) is trading mildly higher at 105.80.
goTop
quote