- DXY cuts losses above the 97.00 mark.
- US Core Producer Prices came in higher than expected.
- Chicago Fed C.Evans due to speak later in the day.
The greenback managed to trim its daily losses and advance to the 97.10 region when tracked by the US Dollar Index (DXY) following upbeat results from June’s Producer Prices.
US Dollar Index retakes 97.00 amidst rising yields
The index gathered steam and surpasses the key 200-hour SMA in the 97.00 area after Producer Prices came in above forecasts during last month. In fact, the headline gauge rose 0.1% inter-month and 1.7% over the last twelve months, while the Core print gained 0.3% MoM and 2.3% on a yearly basis.
The better-than-expected results also lifted yields of the US 10-year note to the area of weekly highs around 2.14%, prompting a rebound in the spread differentials and therefore supporting the buck further.
Later in the day, Chicago Fed C.Evans (voter, dovish) will speak on trade at an event in the ‘Windy City’.
What to look for around USD
The greenback has given away its weekly gains in response to the more-dovish-than-expected views from Chief Powell and the FOMC minutes. The Fed is now gearing up to cut rates, probably as early as this month’s meeting. Trade tensions and weakness overseas continue to cloud the outlook while concerns over the lack of upside traction in inflation remain unabated. Confronting this scenario, the greenback still looks underpinned by its safe have appeal, the status of ‘global reserve currency’ and solid US fundamentals when compared to its G10 peers.
US Dollar Index relevant levels
At the moment, the pair is retreating 0.02% at 97.04 and a breakdown of 96.80 (low Jul.11) would aim for 96.71 (200-day SMA) and then 96.46 (low Jun.7). On the upside, the next barrier emerges at 97.59 (high Jul.9) followed by 97.80 (monthly high Jun.3) and finally 98.37 (2019 high May 23).
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 hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price lacks firm intraday direction, holds steady above $2,300 ahead of US data
Gold price remains confined in a narrow band for the second straight day on Thursday. Reduced Fed rate cut bets and a positive risk tone cap the upside for the commodity. Traders now await key US macro data before positioning for the near-term trajectory.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.