The Dollar’s almost relentless rally on the crest of rising US Treasury yields and curve steepening among other bullish factors stalled at the end of March when it failed to breach a few psychological barriers that remain beyond reach as the new month, quarter and financial year kicks off. It also reached a turning point on the Fibonacci D extension that we called earlier this week in the chart above.
However, this could be a temporary pause in the overall trend pending NFP that is due for release on Good Friday amidst expectations of a blockbuster report from the BLS, and given the fact that currency markets will be left alone to respond in the absence of others at the start of a long holiday weekend.
Looking at the DXY, 93.500 has held (just) within a 93.439-92.716 range, while the benchmark 10 year cash yield topped out at a new cycle high circa 1.776% on Tuesday in tandem with the index.
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