US Dollar drops and rebound from 94.90

The greenback drops to daily lows in sub-95.00 levels.
US 10-year yields bounce off lows in the 2.91% region.
US Philly Fed index dropped to 19.9 for the current month.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which tracks the greenback vs. its main rivals, fell to sub-95.00 levels in response to the softer-than-expected results from the US Philly Fed index.

US Dollar weaker post-US data

After clinching fresh 2018 peaks just above 95.50 in early trade, the index sparked a correction lower to the 94.90 region, or daily highs, following results in the US calendar.

In fact, the Philly Fed manufacturing index dropped to 19.9 for the current month, marking the biggest drop since February 2014 and the lowest level since November 2016. On a better side, weekly Initial Claims bettered estimates at 218K.

The drop in the buck came along a correction lower in yields of the US 10-year note, retreating from the 2.95% area to the 2.91% handle, where it seems to have found some contention for the time being.

US Dollar relevant levels

As of writing the index is losing 0.19% at 94.95 and a breach of 94.53 (low Jun.19) would open the door to 94.44 (10-day sma) and then 94.22 (21-day sma). On the flip side, the next hurdle emerges at 95.41 (2018 high Jun.21) seconded by 96.00 (psychological level) and finally 96.51 (high Jul.4 2017).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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