The USD is shifting larger.
Wanting on the greenback index (DXY) the value is testing the 200 day MA at 103.79. The value moved above that degree on Friday reaching a excessive of 103.88, earlier than failing and rotating decrease. The excessive has simply prolonged to 103.803. Get and keep above to 200 day MA, and the door opens for extra upside momentum.
On the highest aspect, the 61.8% retracement of the transfer down from the 2024 excessive to the 2024 low is available in at 104.074. That might be the subsequent key goal.
In the meantime, the
- EURUSD is buying and selling to a brand new low at 1.0828. The low worth from final week is available in at 1.08106 and is the subsequent draw back goal
- GBPUSD has fallen under the September 11 low goal and pure assist close to 1.3000. The low worth from final week reached 1.2974 and is the subsequent draw back goal.
- USDJPY is buying and selling to a brand new session excessive at 150.266 and stretches towards the excessive worth from final week at 150.316. Its 100-day shifting common and 50% midpoint of the transfer down from the July 2024 excessive is available in and at 150.757. That could be a key goal on the highest aspect for the pair.
Yields are shifting larger which helps the USD transfer larger.
Wanting on the yield curve:
- 2-year yield is again above 4% at 4.023%, up 7.0 foundation factors
- 5-year yield is at 3.961%, 8.4 foundation factors
- 10-year yield is at 4.160%, 8.6 foundation factors
- 30-year yield 4.464%, +8.2 foundation factors
The ten-year yield is buying and selling at its highest degree since July 31, and is stretching towards its 200-day shifting common at 4.187%. The 50% midpoint of the 2024 buying and selling vary is close to that degree at 4.172%. That midpoint and the 200 day shifting common are technical targets that if damaged would tilt the technical bias extra to the upside for yields. Keep under and we may see a rotation again to the draw back. The ten yr yield reached a low of three.605% in September.
With yields shifting larger, shares are shifting decrease.
- Dow industrial common is now down -340 factors or -0.78% at 42935.87
- S&P -36.4 factors or -0.63% at 5027.25.
- NASDAQ index is now down -101 factors or -0.54% at 18388.50.
- The small-cap Russell 2000 is faring the worst after they decliner -34.15 factors or -1.50% at 2241.90
The three main indices closed larger for the sixth consecutive week which is the longest streak in 2024.
In the meantime, gold traded to a brand new all-time excessive of $2740.57 (its forty third new file excessive this yr), however has since backed off and trades close to unchanged at $2720.30 because it reacts at present larger greenback/larger charges.
