CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Forex: Dollar holding firm at 12-month highs

By Piero Cingari

09:59, 12 November 2021

US dollar bill
Dollar holds firm at 12-month highs – Photo: Shutterstock

The US dollar (DXY) is holding firm at its one-year highs versus most other major currencies, amid expectations of growing interest rate differentials.

This week, inflation hitting 30-year highs drove short-term US Treasury yields up to their highest level since March 2020, fuelling market bets on earlier-than-expected interest rate hikes next year.

EUR/USD broke its 2021 lows and is now trading at 1.1449, flat on the day but falling around 1% over the past week.

The British pound edged up against other major currencies, with GBP/USD hovering around 1.3389 and up 0.15% from its previous close.

The Japanese yen remains under pressure, with USD/JPY testing its November 2018 highs and up 4.65% over the past two months.

Meanwhile, oil-related currencies such as the Canadian dollar (CAD) and the Norwegian krone (NOK) softened amid lower crude prices.

What is your sentiment on DXY?

Vote to see Traders sentiment!

Forex Daily Matrix – 12 November 2021

Forex Majors PerformanceForex Daily Matrix as of 12 November 2021, 10:30 UTC – Source:

US dollar

At time of writing the US dollar index (DXY) was hovering around its 12-month highs at 95.13, up 0.06% from previous close.

The dollar appreciated following the release of October’s US inflation rate, which surprised expectations substantially on the upside. The jump in consumer prices has fuelled the market’s bets on faster-than-expected rate hikes by the Federal Reserve next year.

Markets are now pricing in a 70% probability, up from 53% a week ago, that the Fed starts hiking interest rates in June next year.

DXY technical levels:


1.07 Price
-0.170% 1D Chg, %
Long position overnight fee -0.0081%
Short position overnight fee -0.0002%
Overnight fee time 21:00 (UTC)
Spread 0.00080


1.22 Price
-0.500% 1D Chg, %
Long position overnight fee -0.0044%
Short position overnight fee -0.0038%
Overnight fee time 21:00 (UTC)
Spread 0.00110


0.64 Price
+0.370% 1D Chg, %
Long position overnight fee -0.0074%
Short position overnight fee -0.0009%
Overnight fee time 21:00 (UTC)
Spread 0.00050


0.64 Price
+0.370% 1D Chg, %
Long position overnight fee -0.0074%
Short position overnight fee -0.0009%
Overnight fee time 21:00 (UTC)
Spread 0.00050
  • 52-week high: 95.21
  • 52-week low: 89.22
  • 50-day moving average: 93.66
  • 200-day moving average: 92.10
  • 14-day Relative Strength Index (RSI): 66.16

Chart of the day: Market prices in 70% chance of Fed hikes in June 2022

US interest rates market probabilities Market-based probabilties on US interest rates – Data: CME FedWatch Tool; – Credit:


At time of writing, EUR/USD is down 0.1% from previous close and EUR/GBP is 0.2% lower in London midday trading.

The euro is at its lowest against the greenback since July 2020, weakening by more than 2% over the past two weeks, as rising expectations about interest rate differentials with the US weighed on the pair.

On the data front, euro area industrial production was up 5.2% year-on-year in September 2021, above market expectation of a 4.1% rise. 

EUR/USD technical levels:

  • 52-week high: 1.2349
  • 52-week low: 1.1437
  • 50-day moving average: 1.1653
  • 200-day moving average: 1.1880
  • 14-day Relative Strength Index (RSI): 34.22

British pound

GBP/USD is up 0.15% to 1.3589 at time of writing.

The cable has lost 3.3% of its value over the past two weeks, as Bank of England data disappointed market expectations while US inflation fuelled speculations regarding faster rate hikes.

GBP/USD technical levels:

  • 52-week high: 1.4248
  • 52-week low: 1.3104
  • 50-day moving average: 1.3675
  • 200-day moving average: 1.3844
  • 14-day Relative Strength Index (RSI): 34.63

Forex Performance Heatmap – 12 November 2021

Forex Performance HeatmapForex Performance Heatmap as of 12 November 2021 10:00 UTC – Source:

Other currency pairs (% change from previous close):

Chart of the week: USD rallied against all other majors this week

USD performanceUSD Weekly performance vs Majors – Credit: Koyfin

Read more: Pound boost on rate-hike forecasts likely too optimistic

Markets in this article

0.64439 USD
0.0024 +0.370%
11.48010 USD
-0.05891 -0.510%
4.60711 USD
-0.01279 -0.280%
11.85759 USD
-0.06059 -0.510%
1.06502 USD
-0.00183 -0.170%

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 555.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading