US Dollar Index eases from tops near 97.60, US GDP, Powell eyed

The index moves higher and tests 97.60, fresh daily highs.
US 10-year yields met resistance beyond 3.06%.
US flash Q3 GDP, New Home Sales, Powell next on tap.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main rivals is extending the upbeat momentum beyond the 97.00 handle on Wednesday.

US Dollar Index looks to data, trade

The index is looking to add gains for the fourth session in a row today always against the backdrop of a deteriorated scenario in the risk-associated space, where Brexit and Italian politics remain in centre stage.

In addition, the US-China trade dispute has come to the fore as the meeting between Trump and Xi Jinping at the G20 event is coming closer. Investors, however, remain skeptical over a potential deal, keeping at the same time dips in the greenback shallow.

Looking ahead, another revision of US Q3 GDP is due later in the NA session along with October’s New Home Sales, the speech by Chief J.Powell and the weekly report on US crude oil inventories by the DoE.

US Dollar Index relevant levels

As of writing the index is gaining 0.10% at 97.46 facing the next hurdle at 97.54 (high Nov.27) seconded by 97.69 (2018 high Nov.12) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop). On the flip side, a break below 96.78 (21-day SMA) would open the door to 96.32 (low Nov.22) and finally 96.04 (low Nov.20).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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