- The index keeps the bid note and tests the 96.80/85 area.
- US 10-year yields climb to tops near 2.74%.
- US ISM Non-manufacturing, New Home Sales, IBD/TIPP index next on tap.
The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main rivals, is trading on a firm note for yet another session although the upside momentum is struggling to overcome the 96.80 region.
US Dollar Index bid after data
The index keeps the march north unabated this week, up for the fifth session in a row and so far reverting two consecutive weeks with losses.
The broad-based better tone in the riskier assets has been sponsoring the sharp sell off in the Japanese safe haven and thus giving fresh legs to the upside move in USD/JPY, which in turn has rendered in extra support for the buck.
The up move today has been so far accompanied by a bounce in yields of the US 10-year note to fresh tops in the boundaries of 2.75%, some 3 bps up from earlier lows.
Later in the NA session, the non-manufacturing gauge from the ISM will be the salient event seconded by December’s New Home Sales, Markit’s Services PMI and the IBD/TIPP index.
What to look for around USD
The US-China trade talks remain in centre stage amidst auspicious comments from both parties and are expected to keep ruling the sentiment ahead of the Trump-Xi meeting later in the month. The greenback is also expected to stay somewhat cautious on fresh criticism by Trump to the Fed’s monetary policy and the level of the buck. However, the health of the US economy has come back to the fore following auspicious results from the Q4 GDP and other key indicators as of late, which appear to have not only motivated USD bulls to return to the markets but also poured cold water over speculations of a potential halt of the Fed’s tightening cycle.
US Dollar Index relevant levels
At the moment, the pair is gaining 0.14% at 96.78 and a break above 96.82 (high Mar.5) would open the door to 97.09 (high Feb.19) and finally 97.37 (2019 high Feb.15). On the flip side, initial contention emerges at 95.82 (low Feb.28) seconded by 95.68 (200-day SMA) and then 95.16 (low Jan.31).
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
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.