- The index looks for direction in the 95.60 region so far.
- Yields of the US 10-year note opened below 2.68% today.
- US Producer Prices, Philly index next on tap on Tuesday.
The greenback, in terms of the US Dollar Index (DXY), is posting small losses at the beginning of the week around the 95.60 zone.
US Dollar Index supported near 95.00
The index is showing some signs of weakness on Monday following two consecutive daily gains, with support so far emerging at YTD lows in the boundaries of 95.00 the figure. This area of contention appears also reinforced by the critical 200-day SMA near 94.90.
The greenback keeps looking to the broad risk-appetite trends for direction, while market participants continue to adjust to Friday’s inflation figures for the month of December, which came in in line with previous estimates.
Nothing scheduled today in the US calendar, with December’s Producer Prices and the key Philly Fed index expected tomorrow.
What to look for around USD
Progress (or the lack of it) in the ongoing US-China trade talks remains one of the main drivers for the buck’s price action in the near term via its impact on the broader risk trends. Meanwhile, investors continue to gauge the potential re-pricing of the rate path by the Federal Reserve for the next months along with the health of the US economy, all particularly exacerbated after the recent FOMC minutes, dovish comments from Fed-speakers and the renewed ‘patient and flexible’ stance from the Fed.
US Dollar Index relevant levels
At the moment, the pair is losing 0.07% at 95.60 and a breakdown of 95.03 (2019 low Jan.10) would open the door to 94.91 (200-day SMA) and finally 94.79 (low Oct.16 2018). On the upside, the next hurdle arises at 95.87 (10-day SMA) seconded by 96.30 (21-day SMA) and then 96.96 (2019 high Jan.2).
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.
Recommended content
Editors’ Picks
AUD/USD remains under pressure above 0.6400
AUD/USD managed to regain some composure and rebounded markedly from Tuesday’s YTD lows in the sub-0.6400 region ahead of the release of the Australian labour market report on Thursday.
EUR/USD faces decent contention around 1.0600
The knee-jerk in the Greenback reignited some buying interest in the risk complex and pushed EUR/USD to three-day highs near 1.0680, rapidly leaving behind the recent yearly low around 1.0600.
Gold eases despite risk-off mood
Gold trades in a relatively tight range near $2,390 in the second half of the day on Wednesday. In the absence of high-tier data releases, investors keep a close eye on headlines surrounding the Iran-Israel conflict.
Ethereum trades around the $3,000 support following a surge in validator queue
Ethereum (ETH) continued a sideways movement on Wednesday as investors seemed to be waiting for an upward or downward price catalyst. Despite the price stagnancy, the ETH validator queue - possibly fueled by the DeFi restaking boom - rose sharply.
Markets stabilize after Powell rules out rate hike, but the signs don’t look good
Markets are volatile right now; however, a relative calm has descended on the market and US. US stocks are down a touch, but the Vix is lower, US Treasury yields are lower, and the dollar is mostly lower vs. its G10 FX counterparts.