US Dollar Index clings to gains around 97.50 ahead of data

  • The index adds to recent gains in the mid-97.00s.
  • Yields of the US 10-year note climb above 2.11%.
  • NY Empire State Index next of relevance in the docket.

The greenback keeps the positive note at the beginning of the week and is now looking to move further north of the 97.50 level when gauged by the US Dollar Index (DXY).

US Dollar Index looks to data, trade

The index is challenging multi-day highs in the 97.50/60 band on Monday, always on the back of unabated concerns on the US-China trade front and speculations of a down move on rates by the Federal Reserve in the not-so-distant future.

The greenback regained attention during last week following the resurgence of a strong selling presence in EUR and GBP, while auspicious results from Retail Sales and Industrial Production offset somewhat poor prints from advanced Consumer Sentiment and U-Mich 5-year Inflation Expectations.

In the US data space today, the most relevant publications will be the manufacturing gauge by the NY Empire State index, seconded by the NAHB Index and TIC Flows.

What to look for around USD

Markets participants continue to price in the likelihood of rate cuts by the Fed in the next months and this is somehow limiting upside potential in the index. While an ‘insurance cut’ looks likely sooner than later according to market chatter, the upcoming FOMC meeting should shed more light on to the issue and is expected to give further details on the impact of trade tensions on the US economy. However, and in spite of some disappointing results in US fundamentals as of late, the labour market remains strong, wage growth keep pushing higher and the overall economy looks healthy - specially when we consider the weakness in overseas economies – all begging the question whether current speculations of rate cuts are not overdone.

US Dollar Index relevant levels

At the moment, the pair is gaining 0.07% at 97.52 and faces the next hurdle at 97.58 (high Jun.14) seconded by 97.87 (61.8% Fibo of the 2017-2018 drop) and finally 97.71 (high Mar.7). On the downside, a breakdown of 97.02 (100-day SMA) would aim for 96.53 (200-day SMA) and then 96.46 (low Jun.7).

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

Euro rolling into the Asian session below the 1.1051 level

The Euro remains under selling pressure below the main SMAs on the four-hour chart. The market is weak and a break below 1.1028 support level could open the doors to further losses.


Cable remains bearish below 1.2900 handle

GBP/USD is correcting below the 1.2882/1.2900 resistance zone and the 50/100 SMAs. Buyers would need to overcome this area on a daily basis in order to reclaim the 1.2950 resistance.


USD/JPY trims losses, rises back above 109.00

The USD/JPY pair trimmed losses over the last hours amid a recovery of the US dollar and despite the decline in equity prices in Wall Street.


Gold rebounds from multi-month lows, trades around $1,455

After posting its largest weekly percentage drop of the year and erasing more than $50, the troy ounce of the precious metal remained under pressure on Monday with the XAU/USD pair slumping to its lowest level since early August at $1,452.

Gold News

5 Biggest Risks for FX this Week

Monday was a slow start to a busy week for the currency market. The US bond market was closed for Veteran's Day but the stock market was open allowing stocks to consolidate gains. 

Read more