- DXY dropped to fresh lows on Draghi, tested 88.40.
- ECB kept rates on hold, as largely anticipated.
- Draghi disappointed EUR-bears.
The US Dollar Index (DXY) – which tracks the greenback vs. its main competitors – managed to regain some ground after dropping to fresh multi-year lows in the 88.45/40 band during Draghi’s press conference.
US Dollar hurt by (hawkish?) Draghi
The index fell further to record fresh 3-year lows in response to Draghi’s tone at his press conference today, all following a steady stance by the ECB at its meeting earlier in the session.
However, the buck found some buying interest after Draghi almost ruled out a rate hike this year, managing to regain the 88.80 region, albeit within a still clear bearish bias.
On the US data front, initial claims came in at 233K WoW, taking the 4-week average to 240.0K from 243.5K. Further releases saw new home sales dropping to 625K units, or 9.3% during December.
In the meantime, investors’ attention should shift to President Trump and his speech at the WEF in Davos.
US Dollar relevant levels
As of writing the index is losing 0.62% at 88.52 and a break below 88.42 (2018 low Jan.25) would expose 87.64 (low Dec.16 2014) and finally 84.48 (low Oct.15 2014). On the upside, the next barrier aligns at 90.70 (high Jan.22) seconded by 90.98 (high Jan.18) and then 92.64 (high Jan.9).
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.