US Dollar Index finds resistance again at 99.15/20
|The US dollar index is rising for the second day in a row, posting modest gains, despite mixed US data and a recovery in Treasuries. Among currencies, the pound is outperforming.
The DXY gained momentum after Draghi’s press conference (ECB left, as expected, rates and QE unchanged) and rose to test yesterday’s highs around 99.15/20. It failed to break higher and pulled back. Near the end of the American session, it was hovering around 99.00, up 0.15% while the US 10-year yield was back under 2.30%.
Draghi speech: We did not discuss removing easing bias in interest rates
Regarding data, on the negative front Initial jobless claims rose 257K (vs 241K expected) and March Durable Goods Orders gained less-than-expected (0.7% vs +1.2%). On the positive side, pending home sales dropped, but below market consensus (-0.8% vs -1.0%). On Friday, the US will release the first estimate of Q1 GDP growth.
US Pending Home Sales: Despite March’s decline, index remains at a solid level - Wells Fargo
Is the United State economy in good shape? GDP LIVE Coverage and Forex analysis
DXY Technical levels
To the upside, the area around 99.20 (Apr 26 & 27 high) is becoming a strong short-term resistance, followed by 99.75 (Mar 23 low) and 100.00 (psychological). On the flip side, support could be seen at 98.85 (20-hour moving average), 98.65 (daily low) and 98.50 (Apr 25 low).
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