US Dollar Index slides further to test monthly lows

The US dollar is falling on Thursday across the board. US economic data weakened the greenback that extended weekly losses. 

The US Dollar Index is down 0.57%, losing ground for the second day in-a-row. It moved toward a key short-term support. The main driver of dollar’s weakness was US data. The Producer Price Index fell 0.1% in December, against expectations of a modest increase. The core PPI dropped by the same amount and the annual rate fell from 2.4% to 2.3%. 

Another factor that added to the slide of the DXY was the rally of the euro. Earlier today, the minutes from the latest meeting of the European Central Bank revealed that a revision in the guidance could be considered in early 2018. EUR/USD jumped from 1.1950 to 1.2050.

As greenback falls, crude oil is at 3-year highs and the Dow Jones at new all-time-highs. US yields are up for the day but still under yesterday’s multi-month highs. 

Levels to watch 

US Dollar Index (spot) bottomed after the beginning of trading in Wall Street at 91.79, the lowest level since last Friday. The 91.75/80 region is a key short-term support that capped the downside several times in January. A break lower could open the door to more losses. The next support levels might be seen at 91.60 (Sep 15 low) and 91.40. On the upside, resistance levels could be seen at 92.00, 92.27 (Asian session low) and 92.55 (daily high). 


 

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.