US Dollar Index in session tops around 96.80

  • The index stays bid near 96.80, daily highs.
  • Export/Import Prices surprised to the upside in February.
  • Markets’ focus stay on the upcoming Brexit vote.

The correction higher in the greenback seems to have met strong resistance in the 96.80 region when gauged by the US Dollar Index (DXY).

US Dollar Index up on trade talks, Chinese Yuan

The index has managed to regain some attraction today, bouncing off lows in the 96.40 region although losing some upside momentum near 96.80 for the time being.

The demand for the buck has accelerated after latest news on the US-China trade front said President Trump and his peer Xi Jinping have pushed back their meeting for the next month.

In addition, the Chinese Yuan is extending its bearish mood and is now depreciating to fresh 3-week lows vs. the greenback, around 6.7250 at the time of writing.

In the US data space, Export Prices and Import Prices rose above estimates at a monthly 0.6% in February, while Initial Claims rose at a weekly 229K, a tad below estimates and taking the 4-Week Average at 223.75K from 226.25K.

Later in the session, New Home Sales and the NAHB index are also due.

What to look for around USD

The optimism around a positive outcome in the US-China trade front faded somewhat in past days, although investors appear to remain hopeful on a final agreement at the end of the day. On another front, US inflation seems to be losing some traction while activity remains strong, adding to the ongoing debate on whether the Fed should re-assess its next steps in monetary policy, particularly regarding rate hikes. The occasional resumption of the upside in the buck, however, carries the potential to spark fresh bouts of criticism from President Trump to both the Fed’s policy and the level of the currency.

US Dollar Index relevant levels

At the moment, the pair is gaining 0.33% at 96.79 and faces the next hurdle at 96.89 (10-day SMA) seconded by 97.71 (2019 high Mar.7) and finally 97.87 (monthly high Jun.20 2017). On the other hand, a breach of 96.39 (low Mar.13) would open the door to 96.32 (55-day SMA) and then 95.82 (low Feb.28).

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 stable around 1.1300 as markets look calmer

EUR/USD continues trading around 1.1300, marginally higher on the day. Markets are calmer after the sell-off and this helps the euro stabilize and it ignored weak German GfK consumer confidence. Brexit headlines are eyed.

EUR/USD News

GBP/USD moves up after Parliament takes control

GBP/USD is holding above 1.3200 after Parliament approved holding indicative votes. The non-binding votes may put pressure on May to change tack on Brexit or may push Brexiteers to support her deal.

GBP/USD News

USD/JPY sticks to modest gains above 110.00 handle, but lacks follow-through

The USD/JPY pair regained some positive traction on Tuesday, albeit continued with its struggle to build on the momentum further beyond the 110.25 region.

USD/JPY News

What currencies to buy on a US recession after the yield curve inversion?

Bond markets tend to give signals for the future. In the past, when the 3-month US Treasury yield became higher than the benchmark 10-year yield, it was an initial sign of a recession.

Read full report

Gold corrects from 1-month tops, downside seems limited

Gold witnessed some profit-taking move on Tuesday and eroded a part of the previous session's strong up-move to near one-month tops.

Gold News

Majors

Cryptocurrencies

Signatures