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The U.S. dollar index continued to move north, breaking through the 106.00 mark.
Rising U.S. yields continue to support the dollar’s rebound.
U.S. housing data, consumer confidence index and Fed’s Bowman speech will be released next.
The U.S. Dollar Index (DXY), which measures the greenback against a basket of major currencies, continued its rebound on Tuesday and broke above the 106.00 mark, setting a new 2023 high.
The U.S. dollar index rallied for a third straight session on Tuesday and regained territory above the 106.00 mark on strong buying interest around the greenback, U.S. yields moving higher across the curve and further weakness in risk assets.
The view that the Fed may stay in restrictive territory for longer than expected continues to support the dollar’s rebound, while an equally strong upward bias in U.S. yields across time periods has also fueled optimism in the index.
Later in the U.S. data front, the Consumer Confidence Index tracked by the Conference Board will be in focus, followed by the Federal Housing and Home Administration’s house price index, new home sales and a speech from FOMC member Bowman (a permanent voter, a hawk).
Higher investor sentiment and higher yields remained well-supported for the U.S. dollar index, pushing the greenback to a fresh year-to-date high north of the 106.00 mark on Tuesday.
Meanwhile, the good health of the U.S. economy continues to provide support for the dollar, as does the Federal Reserve’s renewed “long-term tightening” stance.
