The US dollar is the best performing G10 currency at press time. The US dollar index (USDIDX) is up 0.6% on the day. Gains on the USD market come as yields erase previous drop. 10-year US yield is now trading near 4.86%, up around 6 basis points off the daily lows reached during the European session. USD strength and pick-up in yields is putting pressure on precious metals with GOLD trading 0.2% lower on the day and SILVER declining 1.3%.
USD is likely to remain volatile in the remaining part of the week as traders will be offered FOMC rate decision (Wednesday, 6:00 pm GMT) and US NFP report for October (Friday, 12:30 pm GMT).
Taking a look at US dollar index chart (USDIDX) at D1 interval, we can see that the index is posting strong gains today and is testing the upper limit of a short-term trading range. Apart from being the upper limit of the range, area above 106.70 is also marked with 50% retracement of the downward move launched in late-September 2023 and previous price reactions. A textbook range of the breakout from this range is around 1800 pips.
Source: xStation5
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