US Dollar Index tumbles to lows near 96.60

The greenback, in terms of the US Dollar Index (DXY) has suddenly receded to fresh lows in the 96.60 region following a sharp drop in US yields. US D  |  15/03/2019 14:15
  • A sudden bout of selling pressure drags DXY to 96.60.
  • Yields of the US 10-year note plummeted to 2.58%.
  • Advanced U-Mich surprised to the upside this month.

The greenback, in terms of the US Dollar Index (DXY) has suddenly receded to fresh lows in the 96.60 region following a sharp drop in US yields.

US Dollar Index rebounds on upbeat U-Mich

The index has quickly dropped to fresh lows in the 96.6/55 band, quickly fading the bullish attempt to the 96.80 area in response to the also abrupt fall in yields of the US 10-year reference to the 2.58% region, or 2-month lows.

The sudden decline, however, failed to extend further after the preliminary print of the US Consumer Sentiment measured by the U-Mich index came in at 97.8 for the current month, bettering previous estimates.

Earlier in the US docket, Industrial Production expanded at a monthly 0.1% in February, coming in below expectations. In addition, Capacity Utilization eased a tad to 78.2% during the same period and the JOLTs Jon Openings surprised to the upside in January, rising to 7.581 million.

What to look for around USD

The optimism around a positive outcome in the US-China trade front faded somewhat in past hours, although investors seem hopeful of a final agreement at the end of the day. On another front, US inflation seems to be losing some traction while activity remains strong, adding to the ongoing debate on whether the Fed should re-assess its next steps of its monetary policy, particularly regarding rate hikes. The occasional resumption of the upside in the buck, however, carries the potential to spark fresh bouts of criticism from President Trump to both the Fed’s policy and the level of the currency.

US Dollar Index relevant levels

At the moment, the pair is losing 0.19% at 96.54 and a breach of 96.39 (low Mar.13) would open the door to 96.33 (55-day SMA) and then 95.82 (low Feb.28). On the other hand, the initial resistance aligns at 96.92 (10-day SMA) seconded by 97.71 (2019 high Mar.7) and finally 97.87 (monthly high Jun.20 2017).

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com