Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
US Dollar (DXY) Treading Water as US Inflation Report Nears

US Dollar (DXY) Treading Water as US Inflation Report Nears

Nick Cawley, Senior Strategist


US Dollar Price, Chart, and Analysis

  • US 2-year yields steady after their recent rally.
  • US headline inflation is expected to hit 6.8% in November.

The US dollar is currently biding its time ahead of the latest look at US inflation on Friday which is expected to show price pressures hitting a fresh 30-year high. Over the recent weeks, the yield on the interest-rate sensitive US 2-year has moved sharply higher with traders currently pricing in a 100% chance of two 0.25% rate hikes next year and a 92% of three hikes. Next Wednesday’s FOMC rate decision and the latest dot plot will guide the US dollar over the next few months.

US headline inflation is currently running at a 30-year high of 6.2% and this is expected to rise further when the November inflation figures are released tomorrow. The market currently expects core US inflation to hit 6.8%, a fresh three-decade high, while the core figure is seen rising to 4.9% from 4.6% in October.

Headline US Inflation

Keep up to date with all market-moving data releases, events, and speeches by using the DailyFX Calendar

The daily US dollar (DXY) chart shows that the recent multi-month trend resistance line has now turned to support and the greenback is currently testing this trend support. The pattern of higher lows and higher highs from mid-2021 remains in place and this will likely remain the case over the coming months. Any sell-off will look to 95.50 for initial support and this level may prove difficult to break barring any unforeseen news. The US dollar is currently attempting to reclaim the 20-day simple moving average (96.09) and a break and hold above here will set up the greenback for a push to the 96.56/58 level.

US Dollar (DXY)Daily Price Chart December 9, 2021

The Quiz
Discover what kind of forex trader you are
Start Quiz

What is your view on the US Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.