US Dollar sees selling pressure come in with US trading session triggering profit taking in DXY
The post US Dollar sees selling pressure come in with US trading session triggering profit taking in DXY appeared on BitcoinEthereumNews.com.
The US Dollar is residing not far from its fresh two-year high level seen in Asian trading on Friday Quadruple Witching – the simultaneous expiration of four types of derivative contracts – is set to take place in the US trading session. The US Dollar Index (DXY) reached 108.55 and looks set to end the year on a rather elevated level. The US Dollar (USD) is residing not far from its fresh two-year high of 108.55 that was hit during the Asian-Pacific trading session. The move was supported by rising US Treasury yields, widening the rate-differential gap with other countries. This means more support for the US Dollar because it becomes more valuable to invest in and get a nice return on your deposit. Friday will be the last chance for traders to move any positions they might have with volatility set to spark up. That comes because of the so-called Quadruple Witching, which takes place four times per year – each third Friday of March, June, September, and December. During Quadruple Witching, four types of financial contracts expire simultaneously: stock index futures, stock index options, stock options, and single-stock futures. All these need to be rolled over, unwinded and settled, leading to a significant increase in trading volumes and sometimes volatility surrounding the main assets. The US economic calendar saw already the release of the Personal Consumption Expenditures (PCE) Price Index for November. All data points came in below the consensus view, making it a rather disinflationary release. Though be it that the actual numbers are marginally lower, it does not change much to the recent stance from the Federal Reserve. Daily digest market movers: PCE not moving the needle anymore Federal Reserve Bank of San Francisco President Mary Daly said during an interview on Bloomberg Surveillance, that even no rate…
