9 days ago • Posted by Ajmir Omid

The dollar's surprising resilience #dxy #dollar #fx #eurusd

The yield premiums that US inflation-adjusted 10-year notes offer over those of other economies that make up the Dollar Index has been narrowing since the start of May as real yields in the eurozone are also on the rise. The ECB is seen hiking rates next month along with central banks from the UK and lately Switzerland. The dollar gauge (UUP) is likely to continue to trade in a range until further inflation data comes out. Bears will be looking at 104.5-105 to sell in the strength, while bulls will likely continue to buy the dip around the 102 level. It will be useful to keep in mind that as long as the growth outlook isn't improving, bulls might have the upper hand...