- The index resumes the downside and tests lows near 94.70.
- US 10-year yields ease from tops around 2.86%.
- US Consumer Confidence by CB next of relevance in the calendar.
The greenback, in terms of the US Dollar Index (DXY), remains on the defensive so far this week and is now challenging the area of daily lows around 94.70.
US Dollar Index looks to data, politics
The selling pressure continues to gather traction around the greenback today and is now dragging the index to clinch fresh 4-week lows in the 94.70 region, challenging at the same time the critical short-term support line.
The buck came under further pressure today as trade war fears continue to ease, particularly after yesterday’s agreement between Mexico and the US, all sustaining the better sentiment surrounding the risk-on complex.
Later in the US docket, the Conference Board will publish its Consumer Confidence gauge and house prices will also be in centre stage in light of the release of the S&P/Case-Shiller index.
US Dollar relevant levels
As of writing the index is losing 0.12% at 94.66 and a break below 94.20 (38.2% Fibo of the 2017-2018 drop) would aim for 94.08 (low Jul.26) and then 93.71 (low Jul.9). On the other hand, the next up barrier aligns at 95.52 (21-day SMA) seconded by 95.60 (10-day sma) and finally 95.71 (high Aug.23).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD pares back gains below 0.6700 amid China stimulus disappointment
AUD/USD pares gains to trade back below 0.6700 in Thursday's Asian trading, following the Chinese property market briefing. Stellar Australian labor data fanned expectations of an extended RBA pause, putting a bid under the pair while the US Dollar retreats ahead of US Retail Sales.
USD/JPY bounces to 149.50 ahead of US Retail Sales data
USD/JPY is finding fresh demand in tandem with the US Dollar in the Asian session on Thursday. China's fresh property market measures disappoint and underpin the safe-haven Greenback. The US Retail Sales data will now take center stage.
Gold price flirts with record peak, seems poised to appreciate further
Gold price built on its uptrend witnessed over the past week or so and retested the all-time high on Wednesday amid the expected interest rate cuts by major central banks. Traders have fully priced in a 25 basis points interest rate cut by the US Federal Reserve in November.
Why is the ECB set to cut interest rates again and what does that mean
The European Central Bank is widely expected to cut interest rates on Thursday for the third time this year. This is a significant achievement as it suggests that the ECB, which sets monetary policy in the Eurozone, is accelerating its path towards lower interest rates after an unprecedented increase.
Another unconvincing policy briefing fails to inspire confidence
Chinese authorities are playing the long game, trying to keep investors focused on the bigger picture, multiple stimulus measures spread out over time, with a bit of subtle bid support from state-backed institutions.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.