US Dollar Index upside faltered ahead of 95.50 ahead of US data
|- The index rebounds from recent lows in sub-95.00 levels.
- Yields of the US 10-year note flirt with lows around 2.81%.
- Initial Claims, flash PMI and New Home Sales next on tap.
Following five sessions closing in the red territory, the US Dollar Index (DXY), which gauges the greenback vs. its main competitors, is now posting moderate gains in the 95.35/30 band.
US Dollar Index looks to data, Trump
The index has regained the smile so far in the second half of the week, managing to shrug off some of the recent US political jitters and re-focusing instead on the trade front, where the second tranche of tariffs on Chinese products worth $16 billion kicks in today.
DXY regained some buying interest in the 95.00/94.90 band on Wednesday following a sharp sell off in past sessions, all in response to the better sentiment in the EM FX space, alleviating trade concerns and particularly after President Trump was in the centre of the debate following accusations by his campaign chair P.Manafort and his lawyer M.Cohen.
On another direction, yesterday’s FOMC minutes left the Federal Reserve poised for another rate hike at the September meeting, while the Committee also discussed the flattening of the yield curve.
Later in the NA sessions, the weekly report on the US labour market is due seconded by Markit’s advanced PMI gauges and New Home Sales during last month.
US Dollar relevant levels
As of writing the index is up 0.24% at 95.33 and a break above 95.49 (high Aug.23) would aim for 96.06 (10-day SMA) and then 96.98 (2018 high Aug.15). On the downside, the next support aligns at 94.93 (low Aug.22) seconded by 94.92 (55-day SMA) and finally 94.08 (low Jul.26).
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.