The DXY pulls back from 19-month highs at 103.08 as traders lock in profits, though the broader bullish trend remains intact amid expectations for a December Fed rate hike.
The DXY hit 19-month highs at 103.08 and has rallied 1.20% over the prior two days, with traders adding dollar longs after stronger-than-expected October price pressures cemented expectations of a December Fed hike, with a 50 basis point jumbo hike on the table. The intraday pullback below 103.00 is a mild correction from overbought levels, with support holding above 102.80, leaving the broader bullish trend intact. More hawkish Fed speakers later on Thursday could extend the upside.
The US Dollar Index (DXY) retreated below 103.00 after reaching a 19-month high of 103.08. Despite the intraday pullback, the index maintains a bullish trend following a 1.20% rally over the past two days, supported by expectations of a potential 50 basis point rate hike by the Federal Reserve in December.
The index pulled back from 19-month highs at 103.08 after becoming overbought, correcting lower on the four-hour chart while support near 102.80 has so far held.
Expectations of a December Fed rate hike, with a possible 50 basis point move still on the table, plus hawkish comments from Fed speakers later on Thursday, support further dollar gains.