US Dollar Index drops to 1-week lows

Matías Salord FXStreet

The US dollar dropped across the board on Thursday on another quiet, low volume, session. Economic data from the US had no impact. On Friday, volume is likely to be even smaller. Wall Street will close earlier tomorrow and will re-open on Tuesday.

Correction limited

The US dollar index dropped below 103.00 and bottomed during the American session at 102.60, the lowest level in a week. Despite the decline, the index continues to consolidate between 14-year highs and 102.50. The holiday trading mode across financial markets contributes the consolidation of the DXY. The key levels are 103.50/55 to the upside, and 102.45/50 to the downside.

Among currencies, the euro and the kiwi were the best performers. Gold broke above $1150 and jumped to $1159, reaching a 2-week high.

In the US, economic data released today showed that initial jobless claims fell to 265K (slightly above the 264K expected) after last week jump to multi-month highs; the trade deficit rose to $65.3bn in November, above the $61.5bn expected and the last report, was wholesale inventories that rose above expectations, 0.9% in November.

Equity prices on Wall Street were mostly flat. The Dow Jones index was falling 0.05%, at 19,825 while the Nasdaq was falling 0.25%. In the bond market, yields were little change. The 10-year fell to fresh weekly lows to 2.472%.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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