US Dollar sees slight Friday downfall as buyer momentum dwindles
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The US Dollar Index (DXY) is currently trading at 106.09, a mild loss from its recent peak of 106.35. The index remains geared toward testing its November 1 high of 107.10. Middle East tensions and hawkish bets on the Federal Reserve (Fed) may drive demand back to the USD. The US economy exhibits robust growth with persistent inflation, triggering a rally of US Treasury yields and benefiting the US Dollar. Higher Middle East tensions cultivate risk-off sentiment, affecting global markets. For the next Fed meeting, signs show some officials considering rate hikes, a major departure from the previous intentions of rate cuts. The US Treasury bond yields are falling but remain near multi-month highs. The DXY's position above the 20, 100, and 200-day Simple Moving Averages (SMAs) indicates that bulls still have control over the overall trend.
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