US Dollar Index bounces off lows post-data, around 97.20


  • DXY meets support near the 97.00 mark earlier.
  • US Retail Sales surprised to the upside in December.
  • Philly Fed index came in above estimates in January.

After bottoming out in the vicinity of the key support at 97.00 the figure, the greenback managed to regain some poise and is now testing the 97.20 region when tracked by the US Dollar Index (DXY).

US Dollar Index bid on upbeat data

The index trimmed earlier losses to the 97.00 area after Retail Sales expanded at a monthly 0.3% during last month and Core Sales expanded 0.7% inter-month, surpassing initial forecasts.

Still on the positive side, the Philly Fed manufacturing index also surprised to the upside, improving to 17.0 in the current month (from 2.4). Initial Claims also surpassed estimates, rising at a weekly 204K and taking the 4-Week Average to 216.25K from 224.00K.

In the meantime, the dollar has managed to recover some ground lost earlier in the session, although it remains under pressure as market participants have started to anticipate tough negotiations regarding the ‘Phase 2’ trade deal between the US and China.

Later in the day, the NAHB index is due seconded by Business Inventories results and TIC Flows.

What to look for around USD

The upside momentum in DXY has so far met interesting resistance in the area of yearly highs around 97.60, while further downside emerged after the US-China trade deal was signed. In the meantime, investors are now looking to domestic data releases for direction in the near-term and any bullish attempt in the buck should initially target the key 200-day SMA in the 97.70 region. Above this level, DXY should regain the constructive view, always underpinned by the current ‘wait-and-see’ stance from the Fed (confirmed once again at the latest FOMC minutes) vs. the broad-based dovish view from its G10 peers, the dollar’s safe haven appeal and its status of ‘global reserve currency’.

US Dollar Index relevant levels

At the moment, the index is up 0.02% at 97.23 and a breakout of 97.58 (2020 high Jan.9) would open the door to 97.69 (200-day SMA) and finally 97.87 (61.8% Fibo of the 2017-2018 drop). On the other hand, initial contention emerges at 97.09 (weekly low Jan.16) followed by 96.36 (monthly low Dec.31) and finally 96.04 (50% Fibo of the 2017-2018 drop).

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD loses 1.1800 amid escalaing US-Sino tensions

EUR/USD dips sub-18 after the US reported an increase of 1.763 million jobs in July, better than estimated but pointing to a deceleration. Escalating Sino-American tensions are boosting the dollar and fiscal talks are eyed. 

EUR/USD News

GBP/USD resumes decline, weighed by UK concerns, US-China conflict

GBP/USD trades at fresh weekly lows below 1.3050 as the dollar got a sudden boost from mounting tensions between the world's two largest economies. UK Chancellor Rishi Sunak said the furlough scheme that is underpinning the economy cannot last forever.

GBP/USD News

XAU/USD drops $50 from record highs to the $2020 area

Gold prices are falling sharply on Friday, trading below $2040/oz at the moment. Earlier on Friday, the yellow metal reached at $2075, a new record high.

Gold News

Bitcoin may extend the recovery once Gold resumes the rally

Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.

Read more

WTI drops 1% to $41.50 ahead of US NFP, rigs data

WTI (futures on Nymex) is on a steady decline so far this Friday, undermined by reduced demand for higher-yielding assets amid the renewed US-China tensions induced risk-aversion.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures