1. Technical Overview
As of writing the index is gaining 0.44% at 93.46 and a break above 94.03 (23.6% Fibo of the 2017 drop) would expose 94.27 (high Oct.6) and finally 95.90 (38.2% Fibo of the 2017 drop). On the downside, the immediate support lines up at 93.10 (21-day sma) seconded by 92.92 (55-day sma) and then 92.75 (low Oct.13).
DXY PRICE SENTIMENT
DXY BULLISH PERCENTAGE INDEX
DXY Pivot points
2. Fundamental Overview
The upbeat sentiment around the buck stays unabated during the first half of the week, now lifting DXY to multi-day tops in the mid-93.00s and always backed by the healthy up move in US yields.
In fact, after testing daily tops around 2.33%, yields of the US 10-year reference have now shed around a bp, although they keep the positive momentum intact for the time being.
In the data space, both industrial and manufacturing production came in in line with expectations, expanding 0.3% MoM and 0.1% MoM, respectively. Further data saw the NAHB index surpassing estimates at 68 for the current month, while capacity utilization expanded a tad to 76.0% in September from 75.8%. Earlier in the session, export and import prices rose at a monthly 0.8% and 0.7%, respectively.
Furthermore around the buck, Dallas Fed R.Kaplan (voter, hawkish) argued that some progress in inflation is likely amidst a tight labour market, adding at the same time that fiscal policy and structural changes may provide upside.
EURUSD FUNDAMENTALS TODAY
3. Latest News & Analysis
The performance of the U.S. Dollar Index (orange line) since December 2015, compared to the performance of the S&P 500 stock index (green line), the Spot Gold price (brown line) and the Dow Jones Utilities Average, a proxy for the U.S. 10-Year Treasuries. Zoom on the chart to get more history.
BULLISH PERCENT INDEX
The Bullish Percent Index measures how strong a currency is against a basket of other 20 currencies.
For each of these currencies a cross rate is calculated and plotted on a price and figure chart.
It then evaluates how many of these crosses are on bullish mode.
The percentage indicates how bullish that currency was against all the other 20, as of yesterday's close.
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Dollar Index, USDX
HISTORIC HIGHS AND LOWS FOR DOLLAR INDEX
- All-time records: Max: 211799.99 on 01/03/2017 - Min: 28.00 on 08/08/1896
- Last 12 months (March 2016-March 2017): Max: 21799.99 on 01/03/2017 - Min: 15450.06 on 20/01/2016
- Last 5 years (March 2011-March 2016): Max: 21799.99 on 01/03/2017 - Min: 12035.01 on 05/06/2012
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE DOLLAR INDEX
The US Dollar Index news can be seriously affected by the decisions taken by this organizations and people:
- Fed, the Federal Reserve of the United States whose president is Janet Yellen. The Fed controls the monetary policy, through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis.
- The US Government (and its President Donald Trump): events as administration statements, budget, new laws and regulations or fiscal policy can increase or decrease the value of the Dollar Index.
- The US Treasury Dept that defines its role as “the steward of U.S. economic and financial systems, and as an influential participant in the world economy.” Its President is Steven Mnuchin.
- US GDP (Gross Domestic Product), the total market value of all final goods and services produced in the United States of America. It is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the Dollar Index, while a low reading is negative.
WANT TO LEARN MORE ON US DOLLAR INDEX?
When I write the Online Trading Academy Forex newsletter, I give my opinion about what I believe is happening to the currencies of the world based on the news I hear, the experts I follow, and my personal experiences of the economic cycles I have seen in the past. This fundamental information helps me understand what reports and indicators the economists of the world believe will shape future events.
Have you watched the US Dollar Index (USDX) Futures contract trade during the day? Do you notice that with each price change the intervals are always a minimum tick of .005? And then at the end of the day when you look at your daily candle of the USDX you see a closing price like 97.197.
Over the last few months especially, there’s been a lot of focus in the world of Currency Trading upon the state of the US Dollar. No matter what your opinion is of the Greenback, it is still, without question, regarded as the world’s primary reserve currency and holds its weight of recognition across the board.