US Dollar Index challenges lows near 96.30 post-U Mich
|- The index loses the grip and drops to the 96.30/25 band.
- Yields of the US-10 note rebound from lows near 2.84%.
- US advanced Consumer Sentiment seen at 95.3 in August.
The greenback, in terms of the US Dollar Index (DXY), is meeting further downside pressure and is navigating daily lows in the 96.30/25 band.
US Dollar offered on US data
The index is down for the second session in a row at the end of the week, re-visiting lows in the 96.30/20 band although managing well to close the fourth week with gains, including a new YTD peaks in the 97.00 neighbourhood (August 15).
The upside momentum in the greenback lost some traction as of late in response to the pick up in the sentiment around the EM FX space, particularly following the recovery in the Turkish Lira and the Chinese Yuan.
In addition, the effervescence around the US-China trade dispute has been decreasing since Chinese officials announced a visit to the US in order to resume the trade talks.
Adding to the downbeat mood around the buck, US flash Consumer Sentiment is expected to drop to 95.3 in August, according to the U-Mich index.
US Dollar relevant levels
As of writing the index is down 0.31% at 96.29 and faces immediate contention at 95.92 (10-day SMA) seconded by 95.26 (21-day SMA) and finally 94.08 (low Jul.26). On the upside, a break above 96.98 (2018 high Aug.15) would open the door to 97.00 (psychological level) and then 97.87 (61.8% Fibo of the 2017-2018 drop).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.