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).

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 bouncing modestly on disappointing US Consumer Confidence

The shared currency remains pressured by the idea that the ECB will come out with massive stimulus measures in September. US Michigan Consumer Confidence down to 92.1 brakes dollar's gains.


GBP/USD retreats sharply after approaching 1.2200

The GBP/USD pair came under selling pressure after flirting with weekly highs, as a dismal US confidence report brought back risk-off. GBP/USD still up for the week and above the critical 1.2100 level.


USD/JPY: Greenback makes modest progress against Yen, near 106.30

The demand for Yen as a safe-haven currency has been weak in the last three days. The levels to beat for bulls are at the 106.30 and 106.55 resistances.


Gold gives back territory towards a 23.6% retracement

Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. 

Gold News

Four Signs of A Bear Market

I am a believer that the Universe gives you signs. That may sound a bit crazy, but these three charts are three more signs of a bear market. The top chart is the GLD exchange traded fund.

Read more