US dollar trims gains after US/Japan meeting

The US dollar lost strength in the currency market during the American cession and pulled back erasing most of its gains. Recently, US President Trump and Japan PM Abe gave a press conference after its meeting. At the same time, the Federal Reserve announced the resignation of governor Daniel Tarullo, effective in April. 

Equity prices on Wall Street continue to rally. The Dow Jones is at all time highs at 20,295 up 0.60% for the day. In the bond market, yield moved off daily highs, the 10-year yield was at 2.408%. 

The US dollar index, which gauges the US dollar against its main competitors, bottomed recently at 100.54 and then rebounded. It was around 100.75, consolidating a weekly gain of 1.10% and headed toward the highest close January 20. 

On Friday, the best performer so far is the Loonie, that jumped in the market, boosted by an optimist Canadian jobs report. The euro and the Swiss franc were among the worst performers. 

DXY levels 

Resistance levels are seen at 101.00 (psychological / daily high), 101.25 and 101.70 (Jan 16 & 19 high). On the opposite direction, support might be located at 100.50/55 (Feb 10 low), 100.00 (psychological / Feb 9 low) and 99.45 (Feb 3 low).