• US Dollar Index, once again, fails to break above 95.
  • Trade conflict fears weigh on consumer confidence in the U.S.
  • US 10-year T-bond yield eases to 2.835%.

The US Dollar Index, which tracks the greenback against a basket of six major currencies, extended its upside to a fresh 2-week high at 95 during the European trading hours but failed to preserve its momentum as the falling T-bond yields and disappointing data from the United States weighed on the greenback. As of writing, the index was virtually unchanged on the day at 94.55.

On Friday, the Consumer Sentiment Index published by the University of Michigan eased to 97.1 in July's first preliminary reading from 98.2 in June and failed to match the market expectation of 98.2. The report showed that consumers' concerns regarding the potential impact of the trade conflict were escalating. "Negative concerns about the impact of tariffs have recently accelerated, rising from 15% in May, to 21% in June, and 38% in July," the publication read.

Furthermore, the import price index decreased by 0.4% on a monthly basis in May while the annual export price index came in at 5.3% to fall short of the experts' estimate of 5.7%.

On the other hand, falling Treasury bond yields make it even more difficult for the buck to find demand. At the moment, the 10-year reference is down 0.65% on the day at 2.835%.

Although the DXY lost its traction on Friday, it remains on track to record gains for the week as the Fed's hawkish stance limit the losses. Earlier today, the Fed published the statement that Chairman Powell will be presenting to the Congress and reiterated that the current state of the economy would warrant further gradual rate increases.

Technical levels to consider

The initial resistance aligns at 95 (psychological level/daily high) ahead of 95.25 (Jun. 28 high) and 95.75 (Jul. 12, 2017, high). On the downside, supports are located at 94.50 (daily low), 93.80 (Jul. 11 low) and 93.40 (Jul. 9 low).

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

GBP/USD pokes weekly resistance line around 1.2100

GBP/USD pokes weekly resistance line around 1.2100

GBP/USD picks up bids to extend the previous day’s recovery to 1.2100 during Wednesday’s Asian session. In doing so, the Cable pair approaches a one-week-old resistance line while also portraying the third bounce off the 50% Fibonacci retracement level of July-August advances.

GBP/USD News

EUR/USD: 1.0100 remains in sight below 21 DMA, EU GDP, Fed minutes awaited

EUR/USD: 1.0100 remains in sight below 21 DMA, EU GDP, Fed minutes awaited

EUR/USD consolidates the previous rebound amid a cautiously optimistic mood. US dollar takes a breather ahead of Fed minutes, the euro awaits Eurozone GDP. The shared currency remains weighed down by recession fears and gas crises.

EUR/USD News

Gold bears are lurking below $1,785

Gold bears are lurking below $1,785

Gold is flat on the day trading at around $1,776.50 and sticking to a tight range of between $1,773.91 to a high of $1,776.85. The yellow metal fell due to rising Treasury yields weighed on investor appetite. A slightly stronger US dollar was also a headwind for investor demand. 

Gold News

Dogecoin price to provide a buying opportunity before exploding 35%

Dogecoin price to provide a buying opportunity before exploding 35%

Dogecoin price sees a slow decline in bullish momentum as a major hurdle puts an end to its explosive move. A pullback is emerging for DOGE and is likely an opportunity that will allow bulls to recuperate and prepare for the next rally.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures