- DXY keeps the range around 98.30/40.
- US flash trade deficit shrunk more than expected in September.
- CB’s Consumer Confidence expected later in the session.
The US Dollar Index (DXY), which gauges the buck vs. a bundle of its main competitors, remains sidelined so far this week above the key 98.00 mark.
US Dollar Index within range, looks to trade, data
The upside momentum in the greenback remains firm for the sixth session in a row on Tuesday.
The rally in the buck motivating the index to trade at shouting distance from monthly peaks in the boundaries of 98.50, all against the backdrop of some auspicious headlines from the US-China trade scenario and despite lower US yields.
Positive results from the advanced trade balance figures in October plus the improvement in house prices measured by the S&P/Case-Shiller index have also collaborated with the better mood in the dollar.
Later in the session, all the attention will be on the Consumer Confidence measure ahead of New Home Sales.
What to look for around USD
The index keeps the topside well and sound so far this week amidst the noticeable absence of headlines from the trade front. In the meantime, and apart from the trade issue, investors keep monitoring US fundamentals amidst the ‘wait-and-see’ stance from the Fed. Moving to US politics, the Trump’s impeachment process remains underway although with muted impact on the FX space for the time being. On the broader view, however, the outlook on the greenback still looks constructive on the back of a cautious Fed vs. the broad-based dovish stance from its G10 peers, the dollar’s safe haven appeal and the status of ‘global reserve currency’.
US Dollar Index relevant levels
At the moment, the pair is up 0.07% at 98.35 and faces the next support at 98.06 (100-day SMA) seconded by 97.68 (low Nov.18) and finally 97.58 (200-day SMA). On the flip side, a breakout of 98.45 (monthly high Nov.13) would open the door to 99.25 (high Oct.8) and then 99.67 (2019 high Oct.1).
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