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US Dollar Index on the defensive near 96.30

  • The index loses momentum and retreats to the 96.30 region.
  • Yields of the key US 10-year note bounce off lows near 3.10%.
  • US Durable Goods Orders, Initial Claims, Pending Home Sales next on tap.

The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main rivals, is now trading on a weak note and is easing some ground after recording fresh tops beyond 96.50 on Wednesday.

US Dollar looks to data, ECB

After advancing to fresh 2-month peaks beyond 96.50 yesterday, the index came under some selling mood today and is checking the 96.30 area ahead of the NA open.

Increasing jitters stemming from the EU-Italy dispute over the budget deficit have been hurting the sentiment around the single currency and the rest of the risk-associated assets in past weeks, as well as the persistent uncertainty surrounding Brexit.

Moving forward, US Durable Goods Orders, the usual report on the labour market and Pending Home Sales are all due later in the session. Attention, however, will also be on the ECB meeting, where the central bank is expected to refrain from acting on the current monetary conditions in the euro area.

US Dollar Index relevant levels

As of writing the index is losing 0.14% at 96.30 facing the next hurdle at 96.53 (high Oct.24) seconded by 96.98 (2018 high Aug.13) and finally 97.87 (61.8% Fibo of the 2017-2018 drop). On the downside, a breakdown of 95.71 (10-day SMA) would open the door to 95.57 (21-day SMA) and finally 94.79 (low Oct.12).

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