US Dollar Index Strengthens as Euro and GBP Weaken

The US dollar index strengthened against a basket of six major currencies to touch 97.836 during Thursday’s US session after touching a high of 97.882. At the time of writing, DXY is trading slightly lower at 97.82.

The two-week high was achieved over better than expected economic data releases from the US, including housing data and weekly jobless claims report. In addition, a bearish move in the Euro and GBP further helped boost the US dollar index.

Weak economic data in the Eurozone and Italy’s growing debt crisis have been weighing the Euro down in recent times, while the GBP continues to weaken over Brexit uncertainty.

The yield on the 10-year US Treasury note also bounced higher on Thursday, from 2.354% to 2.405%, helping the US dollar index turn bullish.