US Dollar Index drops to fresh lows and tests 95.70 post-ISM


  • The index loses further momentum and tests 95.70.
  • Yields of the US 10-year note navigate the 2.64% area.
  • US ISM Non-manufacturing eased to 57.6 in December.

The downside pressure around the greenback remains well and sound so far on Monday, dragging the US Dollar Index (DXY) to challenge the area of YTD lows in the 95.70/65 band.

US Dollar Index offered post-data

DXY remains well entrenched into the negative territory so far this year, down for the third session in a row and still unable to find fresh buyers against the backdrop of prevailing risk-on mood.

Adding to the downbeat feeling, the US Non-manufacturing PMI dropped to 57.6 during December, missing expectations and giving sellers another reason to remain in control of the sentiment around the buck.

What to look for around USD

US-China trade talks kicking in today in Beijing should be key for the buck’s price action in the very near term. A positive-ish outcome would likely accelerate the ongoing leg lower in DXY, while another disappointment should be somewhat supportive of the greenback. In addition, the rising dichotomy between the US solid fundamentals (favouring further tightening) and markets’ belief that some slowdown would be in the offing, in turn prompting the Fed to refrain from acting on rates this year, keeps fresh USD-buyers at bay and undermines any serious attempt of recovery in the Dollar.

US Dollar Index relevant levels

As of writing the index loses 0.46% at 95.72 and a break below 95.65 (2019 low Jan.1) would open the door to 94.79 (low Oct.16 2018) and finally 94.78 (200-day SMA). On the other hand, the next resistance emerges at 96.39 (10-day SMA) followed by 96.72 (21-day SMA) and then 96.95 (high Jan.2).

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD clings to modest daily gains above 1.1550

EUR/USD clings to modest daily gains above 1.1550

EUR/USD holds its ground and trades modestly higher on the day above 1.1550 on Monday. The US Dollar stays resilient against its peers as markets remain cautious on escalating tensions in the Middle East, capping the pair's upside.

GBP/USD stays below 1.3600 as markets remain focused on geopolitics

GBP/USD stays below 1.3600 as markets remain focused on geopolitics

GBP/USD stays slightly below 1.3600 in the second half of the day on Monday, while investors keep a close eye on the ongoing military conflict between Iran and Israel. Later in the week, the Fed and the BoE will announce monetary policy decisions.

Gold retreats from multi-week highs, holds above $3,400

Gold retreats from multi-week highs, holds above $3,400

Gold retreats from a nearly two-month peak it set at the weekly opening but defends the $3,400 mark on Monday. Market participants remain cautious while assessing the latest developments surrounding the Iran-Israel military conflict, helping XAU/USD limit its losses.

Seven fundamentals for the week: Iran-Israel war, Fed to fire up tariff-troubled markets

Seven fundamentals for the week: Iran-Israel war, Fed to fire up tariff-troubled markets Premium

When will the Fed cut interest rates? That question competes with the Israel-Iran war and the fate of the tariffs America slaps on its peers. US retail sales and interest rate decisions in Japan and the UK keep things lively as well.

Chinese data suggests economy on track to hit 2025 growth target

Chinese data suggests economy on track to hit 2025 growth target

China's May data was mixed with strong retail sales, but soft readings on fixed-asset investment and property price. Overall, though, data suggests that China remains on track to achieve its growth target in the first half of 2025.

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025