- The index moves higher and clinches tops near 95.00.
- EM FX jitters, trade concerns bolster the up move.
- US Consumer Sentiment rose to 96.2 in August.
The US Dollar Index (DXY), which tracks the buck vs. a basket of its main competitors, is now trading on a firmer note and closer to the 95.00 milestone, or multi-day highs.
US Dollar Index up on risk-off mood, data
The index managed to leave behind the initial pessimism and is now approaching once again the critical barrier at 95.00 the figure, always on the back of rising trade concerns and a fragile EM FX scenario.
The bid tone around the buck appeared bolstered today by recent comments by President Trump regarding the likeliness of an extra $200 billion worth of tariffs on US imports of Chinese goods, to be implemented as soon as next week.
In addition, the ongoing recovery in the Turkish Lira does not prevent investors from worrying about other EM peers which remain under pressure, like ARS, INR, ZAR or IDR.
In the data space, US final U-Mich index showed Consumer Sentiment ticked higher to 96.2 during August, bettering initial estimates and the July’s reading.
US Dollar relevant levels
As of writing the index is gaining 0.19% at 94.87 and a breakout of 95.01 (55-day SMA) would open the door to 95.51 (21-day SMA) and finally 95.71 (high Aug.23). On the other hand, the next support emerges at 94.45 (low Aug.28) seconded by 94.20 (38.2% Fibo of the 2017-2018 drop) and then 94.08 (low Jul.26).
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