US Dollar (DXY) Posts a Fresh 16-Month High Ahead of a Cluster of Fed Speakers

US Dollar Price, Chart, and Analysis

• US dollar basket spikes above 96.00.
• Multiple Fed speakers on the docket.

The yield on the benchmark US 10-year US Treasury is currently testing a fresh one-month high around 1.65% with traders eyeing the mid-March 1.73% yield level as the next target. While the latest move higher in yields may need to be consolidated to move DXY out of heavily overbought territory – see below – the medium-term outlook for the dollar remains positive.

The strength of the greenback is visible across a range of USD-pairs, notably the Euro and the Japanese Yen. EUR/USD recently posted a new 16-month low, while USD/JPY this week hit a high not seen since March 2017.

Euro (EUR) Price Outlook: No End Yet in Sight for EUR/USD Weakness

IG sentiment data show how retail clients are currently positioned and how these positions have changed over the past week.

A look at today’s DailyFX Calendar shows seven Fed speakers on tap later in the session with more to follow during the rest of the week. Keep up to date with all market-moving data releases, events, and speeches by using the DailyFX Calendar

Today’s Fed Speakers – November 17, 2021

A look at the daily US dollar basket chart shows DXY sitting in heavily overbought territory – using the CCI indicator at the bottom of the chart – after the sharp advance in the greenback over the past few days. The USD has made a strong break above trend resistance and is over 2 big figures higher since last Wednesday. The weakness in the Euro – the single currency has a 57%+ weighting in the US dollar basket – has helped the move, but the greenback remains strong in its own right with the macro backdrop of soaring inflation underpinning the move higher. There is likely to be a period of consolidation in the short-term but with so many Fed speakers on the slate, any hawkish twists could see the greenback attempt another leg higher.

US Dollar (DXY)Daily Price Chart November 17, 2021

What is your view on the US Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.