US Dollar tumbles to lows near 96.20 ahead of GDP

Pablo Piovano FXStreet

The greenback, tracked by the US Dollar Index, is extending its weekly decline to the area of 96.20 ahead of key releases in the US economy.

US Dollar weaker pre-GDP

The index has dropped to fresh 2-week lows around 96.20, retracing further Monday’s 4-month peaks at 97.62 against a backdrop of increasing offered bias accentuated after the dovish statement at the FOMC meeting on Wednesday.

USD will remain under pressure later in the NA session, in light of the publication of advanced US GDP figures for the second quarter and the final prints of the Consumer Sentiment gauged by the Reuters/Michigan index for the month of July.

US Dollar relevant levels

The index is losing 0.50% at 96.21 and a break below 95.78 (low Jul.8) would expose 95.38 (low Jul.5) and finally 95.12 (100-day sma). On the other hand, the next resistance lines up at 97.62 (high Jul.25) followed by 98.58 (high Mar.1) and then 99.95 (high Jan.21).

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.

EUR/USD keeps the offered stance just above 1.1700

EUR/USD is coming under heavy selling pressure in what has been a rather grim start to the new trading week, with the pair now trading close to the 1.1700 support area as the US Dollar stages a solid rebound. The prevailing flight to safety mood continues to favour the Greenback, as investors react to the escalating conflict in the Middle East and trim risk exposure across the board.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold battles to retain the positive momentum

Gold now surrenders part of the earlier advance past the $5,400 mark per troy ounce at the beginning of the week. Indeed, the precious metal’s strong uptick remains fuelled by increasing geopolitical tensions in the Middle East amid the intense demand for safer assets.