The US Dollar Index (DXY), which tracks the buck vs. its main competitors, is now posting marginal gains just above the 92.00 handle.
US Dollar now looks to data
The index is recovering some ground on Friday following yesterday’s pullback and despite the economy showed better-than-expected CPI figures during August.
DXY quickly climbed to fresh tops beyond 92.60 in the wake of the release, all in tandem with a rebound in yields of the US 10-year benchmark to levels above 2.22%. However, and without any follow through, sellers stepped in and drove the greenback back to the negative territory.
Some decent contention appeared in the 92.00 neighbourhood nonetheless, while market chatter around Trump’s tax reform and an up tick in the probability of a rate hike by the Fed at the December meeting (as per CME Group’s FedWatch tool) somewhat limiting the downside for the time being.
In the US calendar, August’s retail sales are next on tap seconded by the advanced gauge of the consumer sentiment for the current month.
US Dollar relevant levels
As of writing the index is gaining 0.04% at 92.08 and a breakout of 92.64 (high Sep.14) would aim for 93.35 (low Aug.31) and finally 93.63 (55-day sma). On the other hand, the immediate support emerges at 91.99 (low Sep.14/15) seconded by 91.71 (low Sep.13) and then 91.01 (2017 low Sep.8).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.