USD Index Pushes Higher Led By Positive Data

On Tuesday, the US Dollar Index (DXY), which tracks the USD’s performance against major rival currencies, advances to fresh highs and levels last recorded in late July 2020 in the 95.80/85 band.

The USD Index has been largely supported by treasury yields, and the latest positive economic data. The index extends the optimism at the beginning of the week and provides motivation for the dollar to record fresh tops in the 95.80 region on Tuesday.

Rebounding US yields across the curve gave more push to the USD, while positive results were also supportive of the solid buying interest in the dollar.

As for positive data, Retail Sales expanded at a monthly 1.7% in October, while Industrial Production expanded 1.6% MoM and Capacity Utilization marked higher to 76.4% for the same period.

Later in the trading session, Business Inventories, the NAHB Index and TIC Flows are due along with FOMC’s speakers Daly, Harker, Bostic and Barkin.