DXY supported at 21-d MA

FXStreet (Edinburgh) - The greenback, tracked by the US Dollar Index, is eroding weekly gains and trading back towards the 94.30 area.

DXY hurt by data

The US dollar reverted a positive start but failed to extend recent gains beyond yesterday’s tops in the 95.10/15 area. Less auspicious results from US Retail Sales and the weekly report on the labour market weighed on sentiment, dragging the index lower.

In addition, the unexpected neutral-to-hawkish tone from Governor M.Carney at today’s Quarterly Inflation Report gave further impetus to the sterling and extended the upbeat tone to the rest of the risk-associated assets.

The USD is now retreating vs. its main competitors with the exception of the Swedish krona, which is trading on a softer tone after a combination of negative rates and QE announced by the Riksbank in today’s meeting.

DXY relevant levels

At the moment the index is down 0.82% at 94.37 with the next support at 94.21 (21-d MA) and then 94.07 (low Feb.12). On the flip side, a break above 95.23 (high Feb.11) would open the door to 95.84 (high Jan.26).

SNB may have done enough; Targeting 1.10 EUR/CHF?

Sebastien Galy, analyst at Societe Generale explained that the SNB may well be correct that current negative rates should be enough for the EUR/CHF to drift significantly higher.
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NZD/USD retreats from 2-week highs

NZD/USD climbed after Wall Street opening bell to 0.7485, boosted by a weak US dollar and amid risk appetite but then retreated and trimmed gains. The pair pulled back to 0.7425 and it was trading at 0.7430, up 0.70% for the day.
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