US Dollar losing the grip, still above 95.00

The index manages to keep business above the 95.00 handle.
US 10-year yields depressed around daily lows in 2.83%.
US Q1 GDP figures came in below expectations at 2.0%.

Pablo Piovano FXStreet

The greenback, in terms of the US Dollar Index (DXY), remains on the defensive on Thursday although still manages to keep the trade above the key 95.00 milestone.

US Dollar offered post-data

The index comes down to the 95.15/10 band, or fresh daily lows, after the third revision of US GDP figures for the January-March period disappointed estimates, showing the economy is now seeing expanding at an annualized 2.0% (vs. 2.2% forecasted).

Further US data noted Initial Claims rose at a weekly 227K, a tad below consensus and taking the 4-week Average to 222.00K from 221.00K.

The greenback faded the initial up move to fresh 2018 peaks beyond 95.50 in response to a pick up in the risk-off sentiment, motivating yields of the US 10-year reference to drop to fresh lows in the 2.83% neighbourhood.

Looking ahead, the EU Summit should gather all the attention among market participants, with migration expected to be in centre stage.

US Dollar relevant levels

As of writing the index is losing 0.020% at 95.14 and a breakdown of 94.86 (10-day sma) would expose 94.34 (21-day sma) and finally 94.17 (low Jun.26). On the flip side, the next hurdle emerges at 95.53 (2018 high Jun.28) followed by 96.00 (psychological level) and then 96.51 (high Jul.4 2017).

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.

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