US Dollar Index recovers and rises back to daily highs, above 97.00

Matías Salord FXStreet

The greenback fell on Monday against most of it competitors but the Dollar Index was modestly higher, boosted by a rally of USD/JPY and marginal gains against European currencies. The DXY was up 0.2%, hovering near daily highs, after being able to recover from losses.

On a low volume day, the index peaked at 97.10 but then turned sharply lower after the release of the US durable goods order and the National Activity Index from the Chicago Fed. New orders dropped 1.1% in May, against 0.6% of estimates, while the Activity Index dropped to -0.26.

Details of May Durable Goods Orders Disappoint

Data to be release on Tuesday included the S&P/Case-Shiller Home Price Index and the Richmond Fed Manufacturing Index. Also, Janet Yellen will speak in London, while many central bankers will appear at an event of the European Central Bank (Draghi, Poloz, Carney and Kuroda).

Equity prices on Wall Street were mixed on Monday. The Dow Jones was up 0.18% while the Nasdaq was falling 0.24%. In the bond market, yield headed lower. The 10-year fell to 2.12%, the lowest in a week. USD/JPY rallied despite the moves in the bond market.

Levels to watch

To the upside the immediate resistance is seen around 97.10 (daily high), followed by 97.30 and 97.45/50 (last week high). On the downside, immediate support might be located a t96.95 (20-hour moving average), 96.75 (daily low) and 96.55.

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.

EUR/USD: Bears flirt with 61.8% Fibo. support near 1.1775 area

The EUR/USD pair extends the previous day's late pullback from the 1.1835 region and attracts some follow-through selling during the Asian session on Tuesday. Spot prices currently trade around the 1.1775-1.1770 area, down nearly 0.15% for the day amid a modest US Dollar strength.

GBP/USD holds losses below 1.3500 due to BoE rate cut bets

GBP/USD edges lower after two days of gains, trading around 1.3480 during the Asian hours on Tuesday. The pair declines as the US Dollar rebounds from losses recorded over the previous two sessions. Traders will focus on the US ADP Employment Change four-week average later in the day, along with speeches from Federal Reserve officials.

Gold bears seem hesitant as geopolitical risks and Fed rate cut bets counter USD uptick

Gold sticks to modest intraday losses below the monthly peak touched earlier this Tuesday, though it lacks follow-through selling and holds above the $5,150 level heading into the European session. Following the previous day's knee-jerk fall in reaction to US President Donald Trump's new global tariffs and the subsequent bounce, the US Dollar attracts fresh buyers in the wake of the US Federal Reserve's hawkish outlook.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.