US Dollar Price Forecast: Rising Yields Lift DXY as EUR/USD and GBP/USD Diverge

US Dollar Price Forecast: Rising Yields Lift DXY as EUR/USD and GBP/USD Diverge

Source: EODHD - https://finance.yahoo.com/markets/currencies/articles/us-dollar-price-forecast-rising-070620837.html
Published: Sep 29, 2026 3:06 AM

Dollar Index Outlook: Rising Yields Support Dollar as ECB Stays Cautious and BoE Hike Bets Build The US dollar is higher on Tuesday, as investor expectation for a longer Fed tightening cycle increased with higher U.S. inflation and interest rates. Oil price increases, along with a rise in Treasury yields, increase expectation for an elongated Fed tightening cycle, and have benefitted the U.S. dollar. Currently, there is a 70% chance for a 3rd consecutive 75 basis point rate hike at the October FOMC meeting, up from 57% last week. Traders expect the federal funds rate to rise to between 4.25% and 4.5%, from the current 3.25%-3.5%. Two year U.S. Treasury yields increased to almost 5%, while lo...

Market context: This update is relevant to EUR traders, with EURUSD as the primary instrument to monitor for follow-through, trend continuation, or headline volatility.