US Dollar Index meets resistance below 98.00 ahead of data

  • The rally in DXY approached the 98.00 handle.
  • US-China trade dispute remain in centre stage.
  • U-Mich, Fedspeak coming up next.

The greenback, in terms of the US Dollar Index (DXY), seems to have met strong resistance in the area below the 98.00 mark.

US Dollar Index keeps looking to trade, data

The index is now struggling to add gains to the weekly rally, finding some selling mood in the proximity of 98.00 the figure, or multi-day peaks.

Auspicious data results on Thursday, strong earnings in Wall Street and lack of fresh headlines from the US-China ongoing trade dispute pushed yields of the US-10 year note to daily highs beyond 2.41% along with another positive performance of the buck.

Further out, Minneapolis Fed N.Kashkari said the Fed made a mistake by raising rates during a recovery, while FOMC’s L.Brainard hinted at the likelihood that the Fed could tolerate a slight overshoot of the 2% goal for a brief period of time.

Moving forward, the preliminary gauge of the US Consumer Sentiment is due next along with speeches by NY Fed J.Williams (permanent voter, centrist) and FOMC’s R.Clarida (permanent voter, dovish).

What to look for around USD

The greenback keeps looking to the US-China trade dispute as the main source of volatility for the time being, although a high degree of uncertainty as well as caution among investors seem to prevail so far. On another direction, inflation figures remain in the centre of the debate among Fed members amidst a solid labour market and healthy fundamentals, preventing the Fed from fully ruling out a rate hike later in the year. The positive outlook on the buck, however, stays unchanged and sustained by overseas weakness, its safe haven appeal, favourable yield spreads vs. the Fed’s G10 peers and the status of global reserve currency.

US Dollar Index relevant levels

At the moment, the pair is losing 0.02% at 97.80 and a break below 97.64 (21-day SMA) would open the door for 97.17 (55-day SMA) and then 97.03 (low May 13). On the upside, the next resistance emerges at 97.88 (high May 16/17) seconded by 98.10 (high May 3) and finally 98.32 (2019 high Apr.25).

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 amid trade calm and German stimulus hopes

EUR/USD is trading around 1.1100, marginally higher. President Trump expressed optimism about reaching a trade deal with China while Germany's Scholz opened the door to stimulus. EZ Core CPI is confirmed at 0.9%.


GBP/USD steady below 1.2150 after Yellowhammer leak, as Corbyn calls for no'confidence

GBP/USD is trading below 1.2150 amid reports of food shortages in case of a hard Brexit, project Yellowhammer. Opposition leader Corbyn calls for a no-confidence motion against the government 


USD/JPY bounces off 106.25, focus on Fed minutes, Jackson Hole

USD/JPY bounces off the key support at 106.25 and heads back towards the 106.50 level, in response to downbeat Japanese trade data, risk-on action in the Asian equities and higher Treasury yields.


Gold trades with modest losses, still above $1500 mark

Gold prices edged lower for the second consecutive session on Monday, albeit managed to hold its neck above the key $1500 psychological mark.

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Bullish levels to watch after Binance announces Venus vs. Facebook's Libra

Cryptocurrencies have been advancing once again, with Bitcoin topping $10,500, Ethereum clawing its way back above $200, and Ripple extending its gains.

Read more