#DollarIndexReclaims101 The Dollar Took Back Tuesday’s Reversal and Kept Going.
The Dollar Index cleared 100.561 Tuesday, reached 100.667, and gave it back after the Iran headline knocked crude lower. Silver bounced on that reversal. Wednesday morning the DXY opened at 100.560, pushed through to 100.862, and is holding near 100.826. The level that failed Tuesday is acting as support.
The move is not coming from a fresh oil shock. Crude is down for a sixth session. The dollar is moving on the rate trade underneath it. The Fed raised last week. Warsh left the door open. Musalem, Goolsbee, and Collins have all reinforced the inflation case this week. Tuesday’s dollar reversal looked like it might give silver breathing room. Wednesday took that away before European desks finished their first cup of coffee.
The next resistance on the DXY is the 101.327 to 101.640 range with the main high at 101.800 above. Six sessions of cheaper crude and the dollar is making new recovery highs. Silver buyers expected falling oil to knock the dollar off its run. It has not touched it.
$B2 $KOMA $H
The Dollar Index cleared 100.561 Tuesday, reached 100.667, and gave it back after the Iran headline knocked crude lower. Silver bounced on that reversal. Wednesday morning the DXY opened at 100.560, pushed through to 100.862, and is holding near 100.826. The level that failed Tuesday is acting as support.
The move is not coming from a fresh oil shock. Crude is down for a sixth session. The dollar is moving on the rate trade underneath it. The Fed raised last week. Warsh left the door open. Musalem, Goolsbee, and Collins have all reinforced the inflation case this week. Tuesday’s dollar reversal looked like it might give silver breathing room. Wednesday took that away before European desks finished their first cup of coffee.
The next resistance on the DXY is the 101.327 to 101.640 range with the main high at 101.800 above. Six sessions of cheaper crude and the dollar is making new recovery highs. Silver buyers expected falling oil to knock the dollar off its run. It has not touched it.
$B2 $KOMA $H
