Us Dollar Index Remains Steady Amid BBB Row

The US Dollar Index, DXY, drops by 0.33%, settling at 96.48 during the day as the New York session. The market sentiment is relaxed, with major US shares falling between 1.51% and 2.86%.

Factors like US President Biden’s failure to get his $2 trillion BBB project backed by Democrat Senator Joe Manchin dampened the US dollar’s chances to gains, among falling US bond yields.

In the US bond market, the Treasury yields fall with 2s, 5s, and 10s dropping between one and four basis points, sitting at 0.6155%, 1.1391%, and 1.388%. The long maturity of the yield curve, with the 20s, and 30s, fluctuate. The 20s are flat at 1.8585%, while the 30-year rise is almost one basis point, at 1.823%

Last week, the main event for the US dollar was the Fed’s decision. The US central bank kept their interest rates unchanged at the 0 to 0.25% range while increasing the speed of tapering, from the $15 Billion agreed initially up to $30 Billion, beginning in mid-January of 2022.

The US Dollar Index daily chart depicts the strong dollar narrative keeps in place. The price is above the central Pitchfork’s uptrend channel, which confluences with the ascending triangle on an uptrend. At press time, the DXY is testing the top-trendline of the ascending triangle on an uptrend, though earlier pierced the abovementioned reaching a daily low at 96.33.