Eseandre Mordi
● According to Barchart, the U.S. Dollar Index (DXY) closed higher for the sixth day in a row on November 5, hitting 100.24. It's the longest rally we've seen since July 2025, and it signals a clear shift in how investors are thinking about the dollar right now.
● The rally boils down to changing views on interest rates and global risk. With bond yields settling down and geopolitical tensions heating up again, the dollar is back in favor as a go-to safe asset. But there's a catch—if this strength keeps up, it could tighten financial conditions, hurt emerging market currencies, and make dollar debt more expensive for developing countries.
● From late-October lows around 96.5, the DXY has bounced nearly 4% in less than two weeks. That kind of move puts pressure on dollar-priced commodities like gold and oil, while making imports cheaper for U.S. consumers. Currency watchers think this could be traders repositioning ahead of the next Fed meeting, especially as expectations shift toward fewer rate cuts—or maybe even a pause.
● The chart shows a clean break above a descending trendline (marked in red), with momentum picking up since late October. The 100 level is a key psychological marker, with resistance near 101.5 and support around 98.7. After months of sideways action, this looks like the start of a real recovery trend.
The U.S. Dollar is on track for its 6th consecutive green day, its longest winning streak since July. As Barchart put it
● It's a sign that confidence in the U.S. economy is back, and investors want stability while global uncertainty lingers. Where it goes from here depends on upcoming inflation and jobs data, which could reshape the Fed's path into 2026.
Eseandre Mordi
