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USD Index Starts Inching Toward Highs Again, Société Générale Economists Say Rebound Towards 114.8 Peak ‘Is Not Ruled Out’ – Economics Bitcoin News


In 2022, the US dollar has been strong, despite the slowdown in the global economy and rising inflation around the world. 12 days ago, the US Dollar Index (DXY) rallied to a high of 114.8 and since then the index has pulled strongly and a recent analysis from economists at Société Générale noted that the index This is likely to bounce back to the high of 114.8.

Greenback index starts to climb again after recent drop, Société Générale economists find ‘pervasiveness of upward momentum’

The US dollar, otherwise known as the greenback, has been a formidable foe for a multitude of fiat currencies this year. A wide range of fiat currencies such as euros, pounds, yen, yuan, Australian and Canadian dollars are all affected by the strength of the greenback. On September 27, US Dollar Index (DXY) hit a high of around 114.8, a high not seen since 2001. The DXY is an index used to measure the value of the greenback against six different fiat currencies.

The basket of fiat currencies traded against the US dollar includes the European Union euro, Swiss franc, Swedish krona, British pound, Canadian dollar and Japanese yen. However, the basket of six currencies is not evenly distributed, as the euro makes up 57.6% of the basket and the yen is the second largest component with 13.6%. This index provides traders, analysts and economists with a fair valuation of the strength of the dollar against a basket of foreign currencies.

USD index starts to inched towards highs again, Société Générale economists say rally towards 114.8 peak 'not ruled out'

DXY was introduced in 1973 when the president of the United States Richard Nixon the gold standard was abolished and the Bretton Woods Agreement was dissolved. At the time, DXY initially started with a base of 100, and the index has rallied a lot since, reaching an all-time high in February 1985. At that time in 1985, DXY touched 160.41 and to break the record from the last high recorded 12 days ago, the index would have to rise more than 39%.

Economists from France-based financial services firm Société Générale SA (Socgen), believe that DXY is heading back into the 114.8 range after the recent pullback. The Socgen economists detailed Oct. 7. The economists added that a break below the 110 region would suggest a deeper pullback, but DXY is currently trading at around 112,747 on the afternoon. Sunday at 11 a.m. (EST).

“Only if the 110.00/109.30 support zone is breached is there a risk of a deeper drop. In such a situation, [the] The next target could be in [the] September low is 107.60”, Socgen economists Written in the company’s US dollars and notes the market outlook. The economists added: “The daily RSI remains in the bullish zone showing the prevalence of upward momentum.

Currently, the five-day metrics show the euro down 2.39% against the US dollar, while the Japanese yen is down 1.02% and the pound is down 3.19%. An ounce of gold is down 1.04% against the greenback this weekend, and silver is down about 2.47%, but still above $20 per ounce of 0.999 fine silver. The global crypto market capitalization of all cryptocurrencies in existence has increased by 0.08% in the last 24 hours and the crypto economy is now worth $944.60 billion.

The stock market closed in the red Friday afternoon as the Nasdaq shed 3.8%, the Dow Jones lost 2.05%, the NYSE fell 3.34% and the S&P 500 lost 2.8%. More than one trillion US dollars in nominal terms was removed from the US stock market on Friday, or a dollar value larger than the size of the entire crypto economy today.

Cards in this story

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What do you think about the US dollar rebounding and heading towards recent highs? Let us know your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the crypto community since 2011. He has a passion for Bitcoin, open source, and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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