- Selling pressure remains around USD.
- Yellen kept rate hike expectations unchanged.
- US producer prices surprised to the upside.
Measured by the US Dollar Index, the greenback is extending the weekly decline and is now threatening to test/breach the critical support at 94.00 the figure.
US Dollar looks to CPI, Trump
The index is trading in 3-week lows at shouting distance from the 94.00 mark today, all amidst a fresh wave of selling pressure and a solid pick up in the demand for EUR, pushing EUR/USD to fresh multi-week tops in the 1.1760/70 band.
Auspicious results from US producer prices for the month of October did nothing to curb the bearish sentiment around the buck, while investors seem to have shifted their focus of attention to tomorrow’s publication of October’s inflation figures tracked by the CPI and retail sales for the same period.
Further news around USD noted Chief J.Yellen leaving unchanged the prospects for extra tightening by the Federal Reserve at the December 13 meeting, while St. Louis Fed J.Bullard (2019 voter, dovish) noted rates should be left unchanged within the current low inflation environment.
US Dollar relevant levels
As of writing the index is losing 0.40% at 94.11 and a breakdown of 94.03 (23.6% Fibo of the 2017 drop) would aim for 93.66 (21-day sma) and finally 93.29 (200-day sma). On the upside, the immediate resistance aligns at 95.15 (high Nov.7) seconded by 95.90 (38.2% Fibo of the 2017 drop) and then 96.55 (200-day sma).
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.
Recommended content
Editors’ Picks
EUR/USD consolidates recovery below 1.0700 amid upbeat mood
EUR/USD is consolidating its recovery but remains below 1.0700 in early Europe on Thursday. The US Dollar holds its corrective decline amid a stabilizing market mood, despite looming Middle East geopolitical risks. Speeches from ECB and Fed officials remain on tap.
GBP/USD advances toward 1.2500 on weaker US Dollar
GBP/USD is extending recovery gains toward 1.2500 in the European morning on Thursday. The pair stays supported by a sustained US Dollar weakness alongside the US Treasury bond yields. Risk appetite also underpins the higher-yielding currency pair. ahead of mid-tier US data and Fedspeak.
Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions
Gold price attempts another run to reclaim $2,400 amid looming geopolitical risks. US Dollar pulls back with Treasury yields despite hawkish Fedspeak, as risk appetite returns.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price is defending support at $1.80 as multiple technical indicators flash bearish. 21.67 million MANTA tokens worth $44 million are due to flood markets in a cliff unlock on Thursday.
Investors hunkering down
Amidst a relentless cautionary deluge of commentary from global financial leaders gathered at the International Monetary Fund and World Bank Spring meetings in Washington, investors appear to be taking a hiatus.