US Dollar Soars Following Fed’s Beige Book

The US Dollar has experienced a sharp recovery following the Beige Book report, which showed slight growth in national economic activity. The report also revealed that employment rose slightly, wage growth was moderate, and prices increased modestly as consumers resisted further price hikes.

According to Fed’s Beige Book, housing demand rose modestly, commercial real estate softened, and overall economic outlooks became more pessimistic amid rising uncertainty. US Treasury yields soared, with the 2-year yield rising to 5%, while the 5- and 10-year rates gained to 4.63% and 4.62%, respectively.

The daily chart indicators indicate a recovery in the US Dollar Index (DXY), with the Relative Strength Index (RSI) rising above the 50 level and the Moving Average Convergence Divergence (MACD) showing fading red bars.

For bulls to continue gaining ground, consolidation above 105.00 would be required. The US Dollar Index (DXY) is hovering around the 105.00 mark on Wednesday, and investors remain risk-averse due to Federal Reserve officials’ continuous asking for patience. As a result, US Treasury yields have recovered, and markets are eagerly looking forward to data that would aid in placing bets for the September meeting.