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US Dollar Index resumes the downside near 92 30

Apr 8, 2021 10:06 GMTFXStreet News DXY reverses Wednesday’s uptick and resumes the downside. US10-year yields consolidate below the 1.70% level so far. US Initial Claims, Powell’s speech next in the docket. The greenback, in terms of the US Dollar Index (DXY), returns to the negative territory around the 92.30 region in the second half of the week. US Dollar Index looks to data, yields The index quickly fades Wednesday’s uptick and resumes the downside in the lower end of the recent range and closer to the key support at the 92.00 yardstick. The loss of upside traction in US yields as of late, particularly the 10-year reference, seems to have undermined the recent bull run in the dollar.

Treasury Yields Mixed Ahead of Jobless Claims Data

Yields have been rising recently over concerns about inflation, amid economic recovery from the coronavirus pandemic. However, the Federal Reserve indicated in its March policy meeting that it would let inflation run above its long-range target of 2%, if it helps achieve full employment. Minutes from the Fed s March meeting, released on Wednesday, confirmed that it would keep its accommodative policy in place until economic outcomes were achieved. Sarah Hewin, head of research for Europe and Americas at Standard Chartered Bank, told CNBC s Squawk Box Europe Thursday that it seemed as though the Fed had factored in some of the improvements seen in the economic data since that last meeting.

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