US Dollar jumps to fresh highs near 94.50
- The index advances to the mid-94.00s or fresh daily tops.
- DXY finds support in session lows in the 94.20/15 band.
- Consumer Confidence surprised to the upside in July.
The greenback, in terms of the US Dollar Index (DXY), has reverted the negative start and is now trading in session tops in the mid-94.00s.
US Dollar propped up by data
The index posted a strong rebound after finding quite decent support in the 94.20/15 area, where lies the key short-term support line off June’s low.
DXY meet extra buying pressure after US Consumer Confidence measured by the Conference Board came in above expectations at 127.4 (vs. 126.5 exp. and 127.1 prev.) for the current month.
Earlier in the session, US inflation figures gauged by the Core PCE rose at an annualized 1.9% in June, a tad below estimates. Additionally, Personal Income and Personal Spending expanded 0.4% MoM during the same period, matching prior surveys.
Later in the week, the FOMC is expected to leave its monetary policy on hold at tomorrow’s meeting, while July’s ISM Manufacturing is seen a tad lower at 59.4 from June’s 60.2.
US Dollar relevant levels
As of writing the index is gaining 0.16% at 94.51 and a breakout of 94.91 (high Jul.27) would target 95.53 (high Jun.28) en route to 95.65 (2018 high Jul.19). On the flip side, the next support emerges at 94.17 (low Jul.31) seconded by 94.08 (low Jul.26) and finally 93.71 (monthly low Jul.9).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
