US Dollar Index remains under pressure near 90.20

  • DXY struggles for direction around the 90.20 area.
  • US 10-year yields creep higher to the 1.60% region.
  • NFIB Index, JOLTs Job Openings, Fedspeak next in the docket.

The US Dollar Index (DXY), which gauges the greenback vs. a bundle of its main competitors, stays depressed in the lower end of the recent range near 90.20.

US Dollar Index supported by the 90.00 zone

The index manages to keep business above the key 90.00 yardstick for the time being, always against the backdrop of the perseverant selling bias in the dollar, somewhat higher US yields and the still sour aftertaste among investors following the April’s Payrolls figures.

Indeed, Friday’s horrible prints from the US labour market report appear to still be weighing on traders’ sentiment and seem to have further undermined the US economic outperformance narrative and lent extra support to the ongoing accommodative stance in the monetary conditions.

In the US data space, the NFIB Index is due in first turn seconded by the JOLTs Job Openings and the weekly report by the API on US crude oil inventories.

In addition, NY Fed J.Williams (permanent voter, centrist), FOMC Governor L.Brainard (permanent voter, dovish), San Francisco Fed M.Daly (voter, centrist), Atlanta Fed R.Bostic (voter, centrist) and Philly Fed P.Harker (2023 voter, hawkish) are all due to speak throughout the session.

What to look for around USD

The index came under extra downside pressure and another visit to the 90.00 support and probably below appears to be gaining some thought among investors. The renewed negative stance on the dollar has been exacerbated following April’s NFP, hurting at the same time the sentiment surrounding the imminent full re-opening of the US economy, which is in turn sustained by the unabated strength in domestic fundamentals, the solid vaccine rollout and once again the resurgence of the market chatter regarding an anticipated tapering. The latter comes in despite Fed’s efforts to talk down this scenario, at least for the next months.

Key events in the US this week: April CPI, Core CPI (Wednesday) - Initial Claims (Thursday) – Retail Sales, Industrial Production, flash May Consumer Sentiment (Friday).

Eminent issues on the back boiler: Biden’s plans to support infrastructure and families worth nearly $4 trillion. US-China trade conflict under the Biden’s administration. Tapering speculation vs. economic recovery. US real interest rates vs. Europe. Could US fiscal stimulus lead to overheating?

US Dollar Index relevant levels

Now, the index is losing 0.01% at 90.27 and faces immediate contention at 90.04 (monthly low May 10) followed by 89.68 (monthly low Feb.25) and then 89.20 (2021 low Jan.6). On the upside, a breakout of 91.06 (100-day SMA) would open the door to 91.43 (weekly/monthly high May 5) and finally 91.72 (50-day SMA).

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 


GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 


XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more