- The index manages to retake the 96.00 handle and above.
- Yields of the US 10-year note stay depressed near 2.52%.
- Philly Fed index surprised to the upside in March.
The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main rivals, continues to recover part of the ground lost on Wednesday further north of the key barrier at 96.00 the figure.
US Dollar Index bid after data, sentiment
After bottoming out in the 95.80/75 band in the wake of the FOMC meeting, the index met some dip-buyers and is now edging higher to the 96.30 region, or fresh daily highs.
The greenback stays bid so far today as market participants continue to digest the recent dovish message from the Federal Reserve and on the back of positive results from the US docket.
In fact, the buck is deriving extra upside momentum after the Philly Fed manufacturing index came in at 17.3 for the month of March, surpassing prior surveys and reverting February’s -4.1 print. Additionally, Initial Claims rose by 221K inter-week, also above expectations and taking the 4-Week Average to 225.00K from 224.00K.
What to look for around USD
The index is expected to trade under extra downside pressure in the next hours while investors adjust their views to the renewed dovish stance from the Fed. In light of the heightened patient stance from the Fed, traders will now scrutinize every piece of incoming data, particularly regarding the inflation performance. Fresh jitters from the US-China trade front could, however, put a floor to the buck’s decline in the near/medium term.
US Dollar Index relevant levels
At the moment, the pair is advancing 0.28% at 96.20 facing the next hurdle at 96.32 (55-day SMA) seconded by 96.58 (21-day SMA) and finally 97.37 (high Feb.15). On the flip side, a break below 95.84 (200-day SMA) would open the door to74 95.89 (low Mar.20) and then 95.16 (low Jan.31).
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
Editors’ Picks
EUR/USD stays near 1.0800 after upbeat US data
EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.