- The index keeps the rebound alive and is now testing 94.40.
- US 10-year yields off lows and test the 2.96% region.
- US Retail Sales, Initial Claims came in above expectations.
US Dollar higher post-ECB, data
The index gathered quick and strong upside traction in response to the dovish tone from President Draghi at today’s press conference following the ‘on hold’ stance from the European Central Bank.
In fact, the ECB left unchanged its repo rate today while it announced the end of its ‘quantitative easing’ programme in December 2018. In addition, the ECB now sees inflation rising at an annualized 1.7% this year and 2019 and 2010, while it revised lower the prospects for growth in Euroland for the next years. The sell off in EUR/USD intensified after the Council ruled out any discussion of policy change, rendering in extra legs to the buck.
The buck also found support in the auspicious results from May’s Retail Sales, Initial Claims and Export/Import Prices, all coming in above expectations.
Therefore, DXY quickly regained and moved further north of the 94.00 handle, turning positive for the week and re-targeting YTD peaks just above the 95.00 handle.
US Dollar relevant levels
As of writing the index is up 0.89% at 94.41 facing the next resistance at 94.43 (high Jun.14) seconded by 94.45 (high May 31) and finally 95.03 (2018 high May 27). On the flip side, a breakdown of 93.22 (low Jun.7) would aim for 92.80 (38.2% Fibo of the April-June up move) and then 92.24 (low May 13).
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 securities. 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 Forex 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.