- DXY remains capped by the sub-97.00 area.
- ADP report came in below expectations in June.
- ISM Non-manufacturing coming up next.
The US Dollar Index (DXY), which gauges the greenback vs. a bundle of its main rivals, keeps the erratic performance so far today, always below the key 97.00 mark.
US Dollar Index now looks to ISM
The index keeps exchanging gains with losses on Wednesday, navigating within a narrow 20-pip range and with a test of the 97.00 barrier still out of reach.
DXY stayed apathetic following disappointing US data releases so far today, with the ADP report showing the US private sector added just 102K jobs during last month, the trade deficit widening to $55.5 billion in June, weekly Claims gaining 221K and Markit’s final Services PMI at 51.5, bettering the preliminary readings.
The lack of convincing upside traction in the buck comes despite the rebound in yields of the US 10-year note, which have dropped below the key 2.0% level earlier in the day.
What to look for around USD
The greenback appears to have lost some upside momentum following Monday’s sharp rebound after the US-China trade truce. Scepticism around the news remains on the raise among investors, somehow carrying the potential to undermine a serious bullish attempt in the buck. This view is also reinforced by speculations of a Fed move on rates in the short-term horizon, while the Fed is expected to keep the data-dependent stance intact and continues to scrutinize the US-China trade situation and uncertainty in global growth.
US Dollar Index relevant levels
At the moment, the pair is losing 0.03% at 96.71 and a breach of 96.62 (200-day SMA) would aim for 95.82 (low Feb.28) and then 95.74 (low Mar.20). On the other hand, the next up barrier lines up at 96.88 (monthly high Jul.2) seconded by 97.08 (100-day SMA) and finally 97.77 (high Jun.18).
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