Author: Mr. Amar – Technical Analyst

US Dollar Index (DXY) consolidates recent losses during early Thursday morning in Europe. However, higher commodity prices supported Canadian and Australian equivalents. The US Dollar Index that tracks the greenback against a basket of other currencies inched up 0.03% to 95.528. To sum up, US Dollar Index remains bearish despite the recent corrective pullback from the intraday low.

We take a look at the pairs that traded against US Dollar, for instance, for AUD/USD pair, it was up 0.40% to 0.7238, with Australian data released earlier in the day showing that the employment change was 64,800. The data also showed that the full employment change was 41,500 and the unemployment rate was 4.2% in December. The GBP/USD pair edged up 0.14% to 1.3624. The two-year golden yield rose to 0.958% on Wednesday, the highest level since March 2018, and gave the pound a boost.

Governments worldwide are beginning to ease quarantine rules and reviewing COVID-19 edges despite the spread of Omicron continuing. This attempt towards a resemblance of normality was motivated by Omicron’s lower severity and boosted a rally in commodities. Meanwhile, investors are also bracing for the US Federal Reserve to tighten monetary policy faster than expected in its policy decision to be handed down this month. Fed funds futures have fully priced in an interest rate hike in March 2022, with four hikes expected within 2022.