US Dollar Index probes session lows near 96.90

  • The index loses the grip and tests the 96.90 area on Wednesday.
  • Yields of the US 10-year note surpass the 2.60% mark.
  • Trade Balance figures, Fedspeak, Beige Book next on the docket.

The greenback, in terms of the US Dollar Index (DXY), has reversed yesterday’s positive performance and is now once again flirting with sub-97.00 levels.

US Dollar Index focused on data, risk

The index comes under renewed downside pressure in the middle of the week following the pick up in the risk-on trade, particularly boosted by firm Chinese releases earlier in the Asian session.

The offered bias in the greenback comes along the continuation of the upside momentum in yields of the US 10-year note, which have managed to clinch fresh multi-week highs beyond the 2.60% handle.

Moving forward, Trade Balance figures during February are due next seconded by Wholesale Inventories and the weekly report on the US crude oil supplies by the EIA.

In addition, Philly Fed P.Harker (2020 voter, hawkish) will speak on the Economic Outlook and St.Louis Fed J.Bullard (voter, dovish) speaks at Hyman Minsky event.

What to look for around USD

DXY keeps tracking the broad risk appetite trends while headlines coming from the US-China/US-EU trade fronts also collaborate with the price action. The recent mixed views from the FOMC minutes reinforce the neutral stance of the Fed in the next months, although a rate raise has not been ruled out just yet. On the greenback’s positive side we find solid US fundamentals, its safe haven appeal, favourable yield spreads vs. its peers and the status of global reserve currency. This, plus the Fed’s neutral/bullish prospects of monetary policy vs. the dovish shift seen in its G10 peers are expected to keep occasional dips in the buck shallow for the time being.

US Dollar Index relevant levels

At the moment, the pair is retreating 0.12% at 96.94 and a breach of 96.75 (low Apr.12) would open the door to 96.72 (55-day SMA) and finally 96.07 (200-day SMA). On the upside, the next hurdle emerges at 97.22 (high Apr.10) seconded by 97.52 (high Apr.2) and then 97.71 (2019 high Mar.7).

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 trims early gains, dangerously close to 1.1200

The positive tone of the pair fades in the American afternoon as demand for the dollar resumes, despite softer-than-expected US data. All eyes on the Fed this week.


GBP/USD extends decline, pierces 1.2550

Despite moving in slow-motion, GBP/USD decline is continuous with the pair trading at levels last seen in January, amid political uncertainty weighing on Sterling.


USD/JPY remains directionless above mid-108s on Monday

The USD/JPY pair is struggling to make a decisive move in either direction on Monday as the slightly upbeat market sentiment doesn't allow the safe-haven JPY to gather strength.


Gold remains on track to close with small losses below $1340

The XAU/USD pair, which closed higher on the weekly chart for the fourth straight time last week, is fluctuating in a relatively tight range on Monday amid a lack of significant fundamental drivers that had a lasting impact on the greenback's market valuation or the risk perception.

Gold News

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.

Read more