The dollar is trading higher today, its 4th consecutive daily gain vs. the G10 pairs. The U.S. dollar index (DXY) is 0.18% for the day and 1.14% since last Friday’s close. The DXY’s recent low at 99.578 was very near support at 99.05, a 61.8% retracement from last September’s high, a key technical indicator.
The widest gain for the dollar today is a 0.93% surge vs. the JPY. USDJPY reached 141.95, its highest mark in 11 days. Bank of Japan officials released a statement overnight stating they see little need to address the side effects of its yield curve control program, which has been criticized for distorting markets by keeping long-term rates form rising.
U.S. Treasury yields have dipped today with most movement in the far-dated tenors. Market attention has shifted to next week’s FOMC rate decision on the 26th, and the high probability of a 25 basis-point hike.
U.S. equity indexes are trading higher, with the Nasdaq 100 leading with a gain of 0.75%. Oil is 0.78% at $76.24/barrel.
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