of clients are net short. | Change in | Longs | Shorts | OI |
| Daily | 7% | 6% | 6% |
| Weekly | 25% | 1% | 8% |
What does it mean for price action? Get My Guide DXY INDEX - US DOLLAR PRICE CHART: DAILY TIME FRAME (19 JUL TO 17 NOV 2020) Chart by @RichDvorakFX created using TradingView
One fundamental driver helping keep the broader US Dollar afloat likely includes rising Treasury yields. That said, the ten-year US Treasury yield has declined by about 12-basis points to 0.87% after failing to take out the psychologically-significant 1.00% level last week. In light of surging COVID-19 cases and escalating restrictions on activity, lingering demand for safe-haven assets such as US Treasuries could explain the downward pressure on Treasury yields.
Recommended by Rich Dvorak Forex for Beginners Get My Guide Further, the Federal Reserve has hinted at the possibility of more dovish measures, which poses a headwind to USD price action. Atlanta Fed President Raphael Bostic stated that the FOMC might need to tweak its asset purchase program and provide more monetary support to the economy after worse-than-expected US retail sales data crossed market wires this morning.
This could keep a lid on long-term US Treasury yields and encourage USD bears to maintain selling pressure. Nevertheless, with risk aversion seemingly creeping back into the market, there is potential that the US Dollar finds a bid due to its posturing as a top safe-haven currency . To that end, the US Dollar is currently trading higher relative to the sentiment-linked Australian Dollar .
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