- DXY moves lower and retests the 92.50 region.
- Initial Claims rose by 419K from a week earlier.
- Existing Home Sales come up next in the calendar.
The dollar extends the bearish move and drops to session lows around 92.50 when tracked by the US Dollar Index (DXY).
US Dollar Index recedes from recent peaks
The index gives away further ground and recedes to the mid-92.00s on the back of the extra improvement in the risk complex.
Yields of the key US 10-year reference also edge lower after briefly testing the area above 1.30% and collaborate with the renewed downside momentum in DXY.
Further selling pressure hit the dollar after the ECB meeting left the key rates unchanged, as expected, and both the Governing Council and Chairwoman Lagarde at her press conference did not sound as dovish as expected.
The docket was not supportive of the buck either after weekly Claims rose by 419K (from 368K) and the Chicago Fed National Activity Index eased to 0.09 in June (from 0.26). Later in the session, Existing Home Sales and the CB’s Leading Index will close the daily calendar.
US Dollar Index relevant levels
Now, the index is losing 0.27% at 92.52 and faces the next support at 92.46 (23.6% Fibo of the November-January rally) followed by 92.00 (monthly low Jul.6) and then 91.51 (weekly low Jun.23). On the upside, a break above 93.19 (monthly high Jul.21) would open the door to 93.43 (2021 high Mar.21) and finally 94.00 (round level).
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