US Dollar Index clinches to gains just below 98.00


  • DXY moves within a tight range around 97.80.
  • US 10-year yields remain near recent tops above 1.80%.
  • Trade Balance figures next of relevance in the docket.

Tracked by the US Dollar Index (DXY), the Greenback is looking to extends the recent positive momentum near the key barrier at 98.00 the figure.

US Dollar Index focused on data, FOMC

The index is trading in the area of 2-week highs just below the 98.00 mark at the beginning of the week, coincident with the key 100-day SMA (97.82) and a Fibo retracement of the 2017-2018 drop (97.87).

In the meantime, DXY remains vigilant on developments from the Brexit process, while the renewed weakness around EUR post-ECB and lack of further progress after the ‘Phase 1’ agreement between the US and China continues to bolster the upbeat mood in the buck.

Later in the session, advanced Trade Balance figures are due along with the less relevant Chicago Fed index.

What to look for around USD

The index managed to regain fresh buying impetus and advanced to peaks near the 98.00 handle. Rising scepticism on the US-China trade front and worsening conditions in the Brexit process as well as the looser ECB stance are seen as key drivers for the price action for the time being, while market participants have already priced in another ‘insurance’ cut by the Fed at its meeting on Wednesday in response to persistent signs that the US economy is running out of steam somewhat. On the broader view, the constructive outlook in DXY looks a bit damaged but it still is in play amidst a divided FOMC vs. a broad-based dovish stance from the rest of the G-10 central banks, the Dollar’s safe haven appeal and the status of ‘global reserve currency’.

US Dollar Index relevant levels

At the moment, the pair is gaining 0.01% at 97.83 and a breakout of 97.89 (high Oct.28) would open the door to 98.35 (55-day SMA) and finally 99.25 (high Oct.9). On the flip side, the next support lines up at 97.14 (monthly low Oct.18) seconded by 97.03 (monthly low Aug.9) and then 96.67 (low Jul.18).

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD nears daily highs amid the prevalent good mood

The market is cautiously optimistic about trade war headlines, with action limited as investors wait for fresher clues. EU’s manufacturing activity stagnated, services output improved just modestly in December.

EUR/USD News

GBP/USD consolidating post-election gains

The GBP/USD pair remains confined to the 1.33/1.34 range, easing within range after disappointing preliminary December Markit PMI. Brexit optimism limits the downside.

GBP/USD News

The phantom of fear pierces crypto market foundations

Negative technical indicators are extremely volatile and are approaching a technical rebound. Ethereum has fundamentals in play versus Bitcoin which could be lethal. XRP is not immune to downfalls and adds to the dangerous game of critical supports.

Read more

Gold consolidates in a range, flat-lined around $1475 level

Gold extended its sideways consolidative price action through the early European session on Monday and remained confined in a narrow trading band near the $1475 region.

Gold News

USD/JPY: Holding on to higher ground but lacking momentum

Positive developments between the US and China keep the mood up. Japanese data mixed, industrial figures continue disappointing. USD/JPY needs to advance beyond 109.72, December monthly high.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures