DXY Strengthens Ahead of Christmas, Nears Two-Year High

The US Dollar gained momentum on Monday, approaching a two-year peak. This upward trend was fueled by an upward revision in November Durable Goods orders, surpassing initial estimates.

Key Developments:

Government Shutdown Averted: A last-minute deal prevented a government shutdown, easing market concerns ahead of the holidays.
Durable Goods Upward Revision: The upward revision in Durable Goods orders boosted the Dollar’s strength.

Economic Data Releases:

Chicago Fed National Activity Index showed a slight improvement.

Consumer Confidence declined in December.

Treasury Auctions: The US Treasury will conduct several bond auctions throughout the day.

Market Sentiment: Asian equities rebounded after a losing streak, while European and US equities experienced losses.

Fed Expectations: Market expectations for a rate cut at the first Fed meeting of 2025 remain low.
US Treasury Yields: The 10-year Treasury yield held near recent highs.

Technical Outlook:

US Dollar Index (DXY): Approaching a key resistance level near 109.29.
Potential support levels at 107.35, 106.52, and 105.53.
55-day SMA could provide support.