US Dollar Index around 96.50 ahead of key data
|- The index retreats from yesterday’s tops near the 97.00 handle.
- Yields of the US 10-year note find some support around 2.62%.
- ADP report and ISM Manufacturing will be the salient publications today.
After climbing to the boundaries of the key 97.00 mark on Wednesday, the US Dollar Index (DXY) met some selling impetus and has receded to the mid-96.00s, where some decent support appears to have emerged.
US Dollar Index looks to risk trends, data
The index has started the year with a strong rebound from lows in the 95.80/60 band, all amidst a resurgence of the risk-off sentiment in the global markets, particularly following poor Chinese results from the manufacturing sector.
The prevailing risk aversion motivated investors to increase their demand for safer assets, government bonds among them, dragging yields of the US 10-year note to their lowest level in a year.
Today’s US calendar includes the publication of US private payrolls measured by the ADP report ahead of the key ISM Manufacturing.
What to look for around USD
Despite the impact on markets of the partial US government shutdown has remained marginal for the time being, the continuation of the current status quo could end up denting investors’ sentiment. In the meantime, unease around US-China trade dispute stays well and sound in spite of the upcoming visit of US officials to China in the next days. In addition, investors remain vigilant on the potential moves on rates by the Fed this year as well as the persistent criticism by President Trump to the Fed’s monetary policy.
US Dollar Index relevant levels
As of writing the index retreats 0.29% at 96.50 and a break below 95.99 (100-day SMA) would open the door to 95.82 (low Jan.2) and finally 95.65 (low Jan.1). On the upside, the next hurdle aligns at 96.78 (21-day SMA) followed by 96.95 (high Jan.20 and then 97.54 (high Nov.28 2018).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.