US Dollar Index pushes higher, in weekly highs above 97.70

  • DXY picks extra pace and advances beyond 97.70.
  • Yields of the US 10-year note drop to the 1.75% area.
  • Final October U-Mich print next of relevance.

The US Dollar Index (DXY), which tracks the Greenback vs. a bundle of its main competitors, keeps the firm tone at the end of the week and is now printing weekly highs beyond 97.70.

US Dollar Index up on EUR, GBP selling

It seems the index is finally on its way to close the first week with gains after three consecutive pullbacks, shedding around 2.5% since YTD peaks recorded on October 1st to last week’s lows in the boundaries of 97.00 the figure.

The recovery in the buck came in tandem with the worsening political conditions in the UK and the Brexit process, particularly following last Saturday’s parliamentary vote. The weakness around the shared currency follows the lack of sustainability of the recent rally on poor domestic fundamentals coupled with the looser stance from the ECB.

In the US data space, the final gauge of the Consumer Sentiment for the current month is due later ahead of next week’s FOMC meeting and Non-farm Payrolls.

What to look for around USD

The index managed to regain fresh buying impetus and clinch tops near 97.80 this week, leaving behind the key 200-day SMA in the 97.40 region. In the meantime, rising scepticism on the US-China trade front and worsening conditions in the Brexit process as well as the looser ECB stance are expected to keep propping up the positive mood around the buck for the time being. On another direction, investors have almost fully priced in another insurance cut by the Fed at next week’s meeting amidst some loss of momentum in the US economy. On the broader view, the constructive outlook in DXY looks a bit damaged but it still is in play amidst a divided FOMC vs. a broad-based dovish stance from the rest of the G-10 central banks. In addition, the positive view on USD remains well sustained by its safe haven appeal and the status of ‘global reserve currency’.

US Dollar Index relevant levels

At the moment, the pair is gaining 0.05% at 97.72 and a breakout of 97.78 (high Oct.24) would open the door to 97.87 (61.8% Fibo of the 2017-2018 drop) and finally 99.25 (high Oct.9). On the flip side, the next support lines up at 97.14 (monthly low Oct.18) seconded by 97.03 (monthly low Aug.9) and then 96.67 (low Jul.18).

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD stabilizing as US coronavirus cases continue to climb

EUR/USD is trading around 1.1250, pressured amid concerns about the spread of coronavirus in the US. Traders are digesting the upbeat Non-Farm Payrolls figures already out ahead of the long US weekend. 


GBP/USD attempting a bounce amid thin liquidity

GBP/USD is closer to 1.25, off the lows. Top-level EU-UK Brexit talks have been postponed until next week amid disagreements. The UK is continuing to reopen while US coronavirus cases are surging. 


Bitcoin must endorse the time of Ethereum has come

The crypto market remains in a choke point, and after signs of a possible upward shift yesterday, the market was once again disappointed to see Bitcoin in the low range of the $8900 to $9000 choke point.

Read more

Gold: There is a bearish signal on the 4-hour chart

Price action has been slow on Friday due to the bank holiday in the US as the nation celebrates independence day. This week has been an interesting one as there has been some good economic data but some very bad coronavirus news in the US. 

Gold News

S&P 500: Futures struggle to refresh two-week top

S&P 500 Futures prints mild loss of 0.10% while declining to 3,126 during the initial hour of Tokyo session on Friday. In doing so, the risk barometer fails to extend the previous four-day winning streak.

Read more