US Dollar Index recedes and rebounds from 96.50
|- The index loses further momentum and drops to 96.50.
- US 10-year yields approach the key 2.90% level.
- US Non-farm Payrolls missed expectations at 155K.
The greenback is now accelerating the downside to fresh lows in the mid-96.00s when gauged by the US Dollar Index (DXY).
US Dollar offered post-Payrolls
The index is suffering the poor results from today’s Payrolls, which showed the US economy added 155K jobs during last month vs. 200K jobs forecasted, leaving the unemployment rate unchanged at 3.7%.
Further data saw Average Hourly Earnings – a proxy for wage inflation – rising at a monthly 0.2% and 3.1% from a year earlier.
Today’s results, despite confirming the robust health of the US labour market, also pour some cold water over expectations of a rate hike by the Federal Reserve at this month’s meeting and prompt some caution against more than a rate hike in 2019.
US Dollar Index relevant levels
As of writing the index is down 0.01% at 96.76 facing immediate contention at 96.38 (low Dec.4) followed by 96.04 (low Nov.20) and finally 95.68 (low Nov.7). On the upside, the next hurdle aligns at 97.00 (10-day SMA) would expose 97.53 (high Nov.28) and then 97.69 (2018 high Nov.12).
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