Thursday was marked by the strengthening of the greenback to all major currencies. Yesterday, the dollar reached its highest value since May 3 - 97.8 points. Today, the USD index continues to trade near the 2-week high.
The American currency was supported by the April release of the real estate market and the weekly report on applications for unemployment benefits, which showed that the US labor market is still in very good shape.
Yesterday, the yield on 10-year-old treasuries fell to a 2-month low of 2.354%, but after the publication of strong data, it jumped to 2.387%, which also supported the US currency.
Bill Sarubbi, an expert with more than 50 years of experience in financial markets, said that, in June the dollar may reach new highs.
His prediction is based on the theory of cycles.
"After the April high, the weekly cycle turned down. Therefore, then, after breaking through the level of 98.2 points, the rally did not take place. Now the weekly "bearish" cycle ends, but the monthly cycle enters the negative phase. Weekly and monthly cycles will go against each other until the end of May. Probably, until June, the USD index will be in the range of 96.6-97.8. Cycles are synchronized in June. At the beginning of the first month of summer, the dollar correction is likely to follow, which will end between June 8 and 12. At this moment, a solid foundation will be formed. As a result, by the end of June, the USD index is expected to grow to 100 points, "said B. Sarubbi.
The last time the dollar index touched this mark was in April 2017.