- The index printed tops near 95.40, just to recede some ground afterwards.
- US 10-year yields bounce off lows to the 2.86% area.
- US Housing Starts, Building Permits came in on the soft side in June.
The US Dollar Index (DXY), which gauges the buck vs. a basket of its main rivals, is managing well to keep business above the 95.00 handle despite losing some upside traction in the 95.40 area.
US Dollar looks to trade, Powell
After hitting fresh 3-week peaks in the 95.40 region in early trade, the index has now met some selling pressure following poor data results from the US housing sector and comments by Advisor Kudlow.
In fact, US Housing Starts tumbled 12.3% in June to 1.173 million units, while Building Permits dropped 2.2% to 1.273 million units. Still in the US docket, the Fed will publish the Beige Book later in the day.
In addition, Kudlow noted the Fed’s gradualist approach is good and that no recession is on sight right now. Kudlow also believes that China could attempt a trade deal with the US.
At his second testimony today, Chief J.Powell repeated his prepared remarks, matching the broad consensus, although attention should stay on the Q&A session coming up next.
US Dollar relevant levels
As of writing the index is up 0.24% at 95.20 facing the next resistance at 95.41 (high Jul.18) seconded by 95.53 (2018 high Jun.21) and finally 96.00 (psychological handle). On the downside, a breach of 94.68 (21-day sma) would target 94.60 (10-day sma) en route to 94.04 (23.6% Fibo of the April-June up move).
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