US dollar index rallies further to highest since February

Matías Salord FXStreet

The US dollar ended the week mostly higher across the board. In the currency market, the worst performers during the week were the loonie (CAD) and the euro (EUR).

The US Dollar index, which gauges the US dollar against its main competitors, is about to end the week 0.70% higher. The index extended gains on Friday supported particularly be the decline of the EUR/USD that dropped below 1.0900 to the lowest since March.

The DXY ended las week challenging the 98.00 area, that was broken on Thursday after the European Central Bank meeting the triggered a decline of the euro in the market. The index peaked today at 98.74, the highest level since February. It is back at the same level it opened the current year. If it continues to rise it would challenge the 99.00 zone and then 2016 highs.

Equity market worldwide posted mix results over the week and finished near last week levels. In Wall Street, the Dow Jones recovered from most the losses on Friday and it was falling marginally (-0.05%) hovering around the 18,150 level, almost the same it had a week ago. The Nasdaq index was about to end the week 0.25% higher, boosted by corporate earnings results.

Regarding economic data, next week the key US report will be the first reading of GDP growth during the third quarter (Friday). It would be the week before the November Federal Reserve meeting.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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