Dollar Index Is Moving in Sync With Swaps and Has a New Yearly High in Sight
- Rally is supported by moves in interest rates and gold
- Momentum studies are working in favor of the U.S. dollar
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The Dollar Index is poised to complete a fourth successive week of gains, and technical patterns as well as its correlation with interest rates confirm it is now within shouting distance of a new high for the year.
The index has advanced more than 2 percent in the past month, taking it past its mid-February high and the 55-day moving average. The U.S. 10-year swap rate -- whose movements the dollar has followed in lock-step -- has broken out of a consolidation pattern, which could lend support to the currency.