Dollar Index Tests 100.50 Support Amid Fed Hints
The U.S. Dollar Index is pressing against 100.50 as Fed officials warn of inflation risks and oil prices rebound toward $100.
Key points
- The U.S. Dollar Index is testing resistance at 100.50 after Fed's Collins warned about inflation risks.
- Brent crude oil prices rebounded toward $100.00, boosting demand for safe-haven assets like the dollar.
- EUR/USD is testing support at 1.1420 as Eurozone consumer confidence fell to -16.5 in September.
The U.S. Dollar Index is testing resistance at 100.50. This move follows hawkish remarks from Fed Governor Collins on inflation risks.
Brent crude oil prices rebounded toward the $100.00 level. This surge boosted demand for safe-haven assets like the dollar.
Dollar Strength Driven By Policy
Collins stated her support for potential rate hikes. Her comments added momentum to the greenback's recent gains.
The index aims to break above the 100.65 zone. Success would target the next resistance range at 101.50 to 102.00.
Euro And Pound Face Pressure
EUR/USD is testing support near 1.1420. Eurozone consumer confidence fell to -16.5 in September, missing forecasts.
GBP/USD remains under pressure from geopolitical tensions. The pair faces downside risk if it drops below 1.3285.
Yields Support Yen And Loonie
USD/CAD is testing resistance at 1.4065. Weak Canadian fundamentals and lack of positive catalysts drive this pair higher.
USD/JPY gains as ten-year Treasury yields settle near 4.97%. Traders now watch if the Bank of Japan will intervene near 160.00.
