US Dollar Index Price Forecast: Technical setup favours further gains above 100
The US Dollar Index (DXY) climbs to a fresh seven-week high on Friday, supported by the Federal Reserves (Fed) hawkish interest rate hike on Wednesday. At the time of writing, the index trades around 100.40 and is on track to register a weekly gain of more than 1%. Meanwhile, US Treasury yields rebound sharply, lending additional support to the Greenback, largely driven by firm Oil prices and persistent concerns over energy-related inflation. The benchmark 10-year yield trades around 5.00%, up over 1% on the day and not far from the 2007 high of 5.04% touched earlier this week. UOB shifts to modestly hawkish Fed view, putting medium-term bearish USD bias at risk Analysts at UOB Group note that their previously articulated stance in the “4Q26 quarterly report” — where a “medium-term bearish USD bias is contingent on an extended Fed rate pause through the remainder of 2026” — is now being reassessed in light of the latest FOMC developments. The bank stresses that, “like the markets, we do not think this is a ‘one-and-done hike’ from the Fed, and as per previous rate hike cycles, the Fed usually does not stop at one.” At the same time, they caution that “we do not









