A new round of sanctions is imposed by the United States on Russia.
US Dollar Index, (DXY). Technical Outlook: Positively biased. However, Pitchfork’s parallel line is just above 99.00.
The US Dollar Index, which measures the greenback’s price against six rival currencies, advanced 0.60% during North American session. This is a sign of a low-risk market, with investors seeking out safe-haven peers. Since the US dollar is the most secure, this indicates a more cautious market. The DXY stands at 99.119 as of the writing.
The market sentiment fluctuated throughout today. In the mid-European session news reported that Russia and Ukraine had held talks. Russian President Vladimir Puttin stated that there have been “certain positive changes” in negotiations with Ukraine. According to BBG, Ukraine’s Foreign Minister Dmytrokubela stated that there had been no progress in talks with Russia late on Friday.
In the meantime, Russia sanctions continue to rise. The US President Joe Biden stated Friday that the United States would revoke Russia’s “permanent natural trade relations” status in order to punish Moscow for its invasion of Ukraine. According to the White House, Russia will be banned from importing US goods, which could result in a disruption of more than $1 billion in Russian export revenues.
The short-term yield curve of the US Treasury yields is mixed. 2s and 5s rose two-and-half and one-and a half basis points respectively to 1.746%, 1.956%, respectively. The T-note for the 10-year is up one-basis point to 2%.
US Dollar Index(DXY) Price Prediction: Technical outlook
The DXY is a positive channel, moving steadily in the ascending channel of Pitchfork. At press time, the DXY is pushing the mid-line between top and central parallel lines. Once broken, it would expose the YTD high of 99.418, followed closely by the 100 mark, and then the top trendline of Pitchfork’s channel in the 100.500 region.
