US Dollar Index tumbles to lows near 96.60

  • A sudden bout of selling pressure drags DXY to 96.60.
  • Yields of the US 10-year note plummeted to 2.58%.
  • Advanced U-Mich surprised to the upside this month.

The greenback, in terms of the US Dollar Index (DXY) has suddenly receded to fresh lows in the 96.60 region following a sharp drop in US yields.

US Dollar Index rebounds on upbeat U-Mich

The index has quickly dropped to fresh lows in the 96.6/55 band, quickly fading the bullish attempt to the 96.80 area in response to the also abrupt fall in yields of the US 10-year reference to the 2.58% region, or 2-month lows.

The sudden decline, however, failed to extend further after the preliminary print of the US Consumer Sentiment measured by the U-Mich index came in at 97.8 for the current month, bettering previous estimates.

Earlier in the US docket, Industrial Production expanded at a monthly 0.1% in February, coming in below expectations. In addition, Capacity Utilization eased a tad to 78.2% during the same period and the JOLTs Jon Openings surprised to the upside in January, rising to 7.581 million.

What to look for around USD

The optimism around a positive outcome in the US-China trade front faded somewhat in past hours, although investors seem hopeful of a final agreement at the end of the day. On another front, US inflation seems to be losing some traction while activity remains strong, adding to the ongoing debate on whether the Fed should re-assess its next steps of its monetary policy, particularly regarding rate hikes. The occasional resumption of the upside in the buck, however, carries the potential to spark fresh bouts of criticism from President Trump to both the Fed’s policy and the level of the currency.

US Dollar Index relevant levels

At the moment, the pair is losing 0.19% at 96.54 and a breach of 96.39 (low Mar.13) would open the door to 96.33 (55-day SMA) and then 95.82 (low Feb.28). On the other hand, the initial resistance aligns at 96.92 (10-day SMA) seconded by 97.71 (2019 high Mar.7) and finally 97.87 (monthly high Jun.20 2017).

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.

Feed news

Editors’ Picks

EUR/USD stable around 1.1300 as markets look calmer

EUR/USD continues trading around 1.1300, marginally higher on the day. Markets are calmer after the sell-off and this helps the euro stabilize and it ignored weak German GfK consumer confidence. Brexit headlines are eyed.

EUR/USD News

GBP/USD moves up after Parliament takes control

GBP/USD is holding above 1.3200 after Parliament approved holding indicative votes. The non-binding votes may put pressure on May to change tack on Brexit or may push Brexiteers to support her deal.

GBP/USD News

USD/JPY sticks to modest gains above 110.00 handle, but lacks follow-through

The USD/JPY pair regained some positive traction on Tuesday, albeit continued with its struggle to build on the momentum further beyond the 110.25 region.

USD/JPY News

Crypto News

majors

Editors’ Picks

EUR/USD stable around 1.1300 as markets look calmer

EUR/USD continues trading around 1.1300, marginally higher on the day. Markets are calmer after the sell-off and this helps the euro stabilize and it ignored weak German GfK consumer confidence. Brexit headlines are eyed.

EUR/USD News

GBP/USD moves up after Parliament takes control

GBP/USD is holding above 1.3200 after Parliament approved holding indicative votes. The non-binding votes may put pressure on May to change tack on Brexit or may push Brexiteers to support her deal.

GBP/USD News

USD/JPY sticks to modest gains above 110.00 handle, but lacks follow-through

The USD/JPY pair regained some positive traction on Tuesday, albeit continued with its struggle to build on the momentum further beyond the 110.25 region.

USD/JPY News

What currencies to buy on a US recession after the yield curve inversion?

Bond markets tend to give signals for the future. In the past, when the 3-month US Treasury yield became higher than the benchmark 10-year yield, it was an initial sign of a recession.

Read full report

US Conference Board Consumer Confidence Preview: Is sentiment enough?

The Consumer Confidence Index from the non-profit business group the Conference Board is projected to rise to 132.0 in March from 131.4 in February. 

Read full report

signatures


  •  
  •  
  •  
  •  
  •