US Dollar retreats from tops, back to 94.70

  • The index loses momentum and tests the 94.70/65 band.
  • US 10-year yields keep the topside near 2.87%.
  • US consumer prices rose 0.1% MoM in June, less than forecasted.

The greenback, gauged by the US Dollar Index (DXY), has given up part of its initial gains and has returned to the 94.70 region.

US Dollar off highs on US CPI

After moving higher to the boundaries of the critical 95.00 milestone, the index meet a wave of selling pressure after June’s US inflation figures came in below expectations.

In fact, headline consumer prices rose at a monthly 0.1% and 2.9% over the last twelve months. In the same line, prices excluding food and energy costs rose 0.2% inter-month and 2.3% on a yearly basis.

In the meantime, the buck remains wary on the ongoing trade effervescence between China and the US as well as Trump’s trip to Europe and his comments on the NATO.

US Dollar relevant levels

As of writing the index is up 0.05% at 94.79 and a breakout of 94.94 (high Jul.12) would open the door to 95.03 (high May 29) and then 95.53 (2018 high Jun.28). On the other hand, the next support emerges at 94.65 (21-day sma) followed by 94.45 (10-day sma) and then 94.04 (23.6% Fibo of the April-June up move).

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