US Dollar Index ends week lower, under pressure after US data

On a quiet Friday, amid low liquidity, the US dollar fell modestly across the board weakened after the release of US economic data. The greenback finished the week lower. Most losses took place late Wednesday, after comments from US President Donald Trump. 

Bad data for the USD

Inflation data released on Friday showed that the Consumer Price Index (CPI) fell 0.3% in March, having the largest decline since 2015. On another report, retail sales declined 0.2% (against expectations of a -0.1% reading), contracting for the second month in a row. 

US: CPI falls 0.3% in March; index excluding food and energy falls 0.1%

US: March advance monthly retail sales were $470.8 billion, 0.2% lower from February

The US dollar index fell modestly to 100.40 after the reports, on the most notable price action move on Friday. The DXY could start next week under pressure taking into account that most markets were closed on Friday and the data published on Friday is not USD-positive. Normal liquidity conditions are expected to return on Tuesday.  

DXY Technical levels

The index peaked on Monday at 101.20 (3-week high), before reaching a key downtrend line from December highs, that currently stands at around 101.15/20 (also the 20-WMA). A break higher should give strength for a significant rally of the USD. 

To the downside, the index ended testing the 100.40 area, below here it could extend the slide to 100.00 (Apr 13 low); below the next support could be seen at 99.55 (Mar 22 & 24 low).