- DXY remains below the key 200-day SMA.
- US 10-year yields navigate in the sub-1.80% area.
- Claims, Durable Goods Orders, Factory Orders, Trade Balance on the docket.
The greenback, when tracked by the US Dollar Index (DXY), remains under pressure near the 97.50 region so far his week.
US Dollar Index focused on trade, data
The index is extending the negative streak for the fifth session on Thursday, breaking below the key 200-day SMA in the 97.60/65 band albeit managing to find some contention around 97.40 for the time being.
Auspicious headlines around the US-China ‘Phase One’ deal, mainly regarding to the rollover of tariffs were doing the rounds on Wednesday and somewhat halted the dell-off in the buck. However, the miserable print from November’s ADP report (67K) added extra downside pressure to the greenback, which was later reinforced after the ISM Non-Manufacturing missed expectations during last month.
Data wise on Thursday, usual weekly Claims are due seconded by Challenger Job Cuts, Factory Orders, Durable Goods Orders and Trade Balance.
What to look for around USD
The dollar remains under moderate pressure, exacerbated after the recent loss of the 200-day SMA near 97.60. In the meantime, the focus of attention remains on US-China headlines and the US docket, which kept disappointing investors as of late. The constructive view on the dollar is now compromised as the apparent slowdown in the US economy seems to be gathering traction despite the ‘wait-and-see’ stance from the Fed vs. the broad-based dovish view from its G10 peers, the dollar’s safe haven appeal and its status of ‘global reserve currency’.
US Dollar Index relevant levels
At the moment, the pair is retreating 0.06% at 97.54 and faces the next support at 97.43 (monthly low Dec.4) seconded by 97.11 (monthly low Nov.1) and then 97.03 (monthly low Aug.9). On the flip side, a break above 98.13 (100-day SMA) would aim for 98.54 (monthly high Nov.29) and finally 99.25 (high Oct.8).
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