The dollar fell into a consolidation after hitting at 4-month high at 92.5.
However, it was able to find constant support at the demand zone at around 91.4 amid a rising treasury yield which sparks demand for safe-haven assets.
Last week, the Fed has reiterated its commitment to keep interest rate low for a prolonged period of time until employment market and inflation reach stability.
The Fed is not worried about a surge in inflation even as rising yield prompted a risk of high inflation.
Therefore, treasury yield continued to rise after FOMC and dollar gain new bullish momentum.
This week, we plan to long the dollar as we expect the dollar to continue to break new 2021 high in the coming weeks.
We expect the dollar to retest its previous high at 92.5, and probably climb beyond 93 in the next 2 weeks.
However, it was able to find constant support at the demand zone at around 91.4 amid a rising treasury yield which sparks demand for safe-haven assets.
Last week, the Fed has reiterated its commitment to keep interest rate low for a prolonged period of time until employment market and inflation reach stability.
The Fed is not worried about a surge in inflation even as rising yield prompted a risk of high inflation.
Therefore, treasury yield continued to rise after FOMC and dollar gain new bullish momentum.
This week, we plan to long the dollar as we expect the dollar to continue to break new 2021 high in the coming weeks.
We expect the dollar to retest its previous high at 92.5, and probably climb beyond 93 in the next 2 weeks.