- DXY found decent support in the mid-88.00s.
- US 10-year yields closer to 2.80%.
- US non-farm payrolls coming in next.
The US Dollar Index (DXY), which measures the greenback vs. its main competitors, is managing to stage a rebound to the 88.70/75 band after probing fresh weekly lows in the mid-88.00s during early trade.
US Dollar now focused on payrolls
In spite of the current rebound, the index remains entrenched well into the bearish territory and trading close to last week’s multi-year lows in the 88.40 region.
Higher yields in the US money markets and prospects of further tightening via (three) rate hikes this year appear not even close to spark a more durable upside reaction in the buck, which stays at the mercy of, mainly, the uncertainty and effervescence of the US political scenario.
It is worth mentioning that DXY lost already around 7% since December’s peaks above the 95.00 handle, while the loss climbs to nearly 15% when we take into account 14-year tops in the 103.80 area recorded over a year ago (January 2017).
Ahead in the session, the monthly US labour market report is due, with initial estimates seeing non-farm payrolls coming in at 180K for the month of January.
US Dollar relevant levels
As of writing the index is up 0.04% at 88.69 facing the next up barrier at 90.70 (high Jan.22) followed by 90.98 (high Jan.18) and then 92.64 (high Jan.9). On the flip side, a break below 88.55 (low Feb.2) would open the door to 88.42 (2018 low Jan.25) and finally 86.60 (weekly trend line off 72.70).
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.