DXY bounces off 96.50

FXStreet (Edinburgh) - The greenback, in terms of the US Dollar Index, seems to have resumed the downside on Wednesday, currently hovering over 96.70/75.

DXY lower on risk, US data

The resurgence of the risk-on sentiment following the opening bell in Euroland quickly sent the index lower, from the 97.20 area overnight to the mid-96.00s. Poor US releases from the Durable Goods Orders in February accentuated the intraday decline, although the dollar saw some decent support around 96.50.

Looking to the upcoming data, the weekly report on the US labour market, Markit’s Services PMI and the speech by Fed’s Lockhart will be the main highlights on Thursday.

DXY levels to consider

The index is now retreating 0.51% at 96.70 with the next support at 96.41 (low Mar.18) ahead of 96.30 (low Mar.6) and finally 95.84 (low Mar.5). On the upside, a breakout of 98.23 (high Mar.23) would aim for 99.11 (high Mar.20) and then 99.46 (high Mar.19).

Surprise drops in US durable goods – MP

Dean Popplewell, Director or Currency Analysis at MarketPulse, notes that the surprise drop in US durable goods data suggests that the slowdown in global growth might be weighing on American manufacturers.
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