US dollar index rises to 1-week high

The US Dollar index, which gauges the US dollar against its main competitors, gained momentum during the American session amid a decline in US stocks and rising bond yield. The index rose from 95.20 and peaked at 95.63, the highest level since September 6. Currently is hovering around, holding a bullish tone.

The US dollar is the best performer in the forex market on Tuesday and gained particularly versus commodity currencies that were affected by the decline crude oil and in stocks.

In the US, the Dow Jones was falling 1.55% or 280 points (still holding above 18,000) while the Nasdaq was losing 1.35%. The WTI barrel was falling 3%, trading below $45.00. In the  bond  market, the US 10-year yield jumped from 1.650% to 1.732%, the highest level in two months.

DXY technical outlook

“The US Dollar Index has been steadily moving higher.  We continue to monitor an uptrend line drawn off the April, June, and August lows, which caught the September low as well.  It comes in near 95.55.  Yesterday and today have been about consolidation.  The US Dollar Index is trading today within yesterday's range, which was within last Friday's range.  A move above 95.60 is needed to signal another run at 96.00-96.25”, said analysts from Brown Brothers Harriman.