US Dollar slips lower to mid-90.00s

Haresh Menghani FXStreet

The US Dollar struggled to build on overnight strong rebound and held with modest losses in a rather subdued trading action on Thursday.

On Wednesday, the greenback staged a solid rebound from fresh 3-year lows and was further supported by better-than-expected US industrial production/capacity utilization data. The recovery move got an additional boost after the Federal Reserve's Beige Book reaffirmed that the central bank was still on track for three rate hikes in 2018.

The up-move, however, lacked any strong follow-through traction and was now capped by a stronger Euro, which managed to recover part of previous session's sharp retracement from three-year tops.

Meanwhile, surging US Treasury bond yields, with 2-yr yields breaking out to the highest level since 2008 and 10-yr yields holding just under 2.60%, March 2017 highs, helped limit deeper retracement, at least for the time being.

There isn't anything notable data due for release during the European trading session and hence, the lackluster trading action is more likely to get extended until the US economic releases.

Today's US economic docket features the release of housing market data, which along with Philly Fed Manufacturing Index and initial weekly jobless claims should help traders grab some short-term trading opportunities.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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