- The index keeps pushing higher beyond 95.00 the figure.
- US 10-year yields plummet to 2.91% after testing 3.0% post-FOMC.
- US Empire State index, Industrial Production, U-Mich next on tap.
The US Dollar Index (DXY) – which gauges the greenback vs. its main competitors – is extending the recent upside momentum to the area above the 95.00 milestone, recording at the same time fresh YTD tops.
US Dollar boosted by ECB, attention to data
The index is adding to yesterday’s strong gains and moves beyond 95.00 the figure, clinching at the same time fresh multi-month peaks.
The demand for the greenback has been boosted after the ECB delivered a dovish tone at its meeting on Thursday, where the central bank announced the end of its ‘quantitative easing’ programme in December and hinted at the likelihood of a rate hike at some point in Q4 2019.
The rapid unwind of EUR longs sparked a sharp sell off in EUR/USD, rendering in extra oxygen for the buck and thus pushing the index further up. That said, DXY managed to shrug off the recent weakness emerged in the wake of the FOMC meeting.
In the meantime, and with the FOMC and ECB meetings out of the way, market’s attention will now be on the US-China trade front, where speculations have been growing bigger on a potential wave of further
Later in the NA session, advanced U-Mich results for the month of June will be the salient release, seconded by Industrial Production figures and the NY Empire State gauge.
US Dollar relevant levels
As of writing the index is up 0.08% at 95.00 facing the next hurdle at 95.14 (2018 high Jun.15) seconded by 95.15 (high Nov.6 2017) and finally 96.51 (high Jul.4 2017). On the other hand, a breach of 93.97 (21-day sma) would open the door to 93.92 (10-day sma) and then 93.21 (low Jun.6).
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