DXY inter-markets: surviving above 100.00

The US Dollar Index – which gauges the buck vs. its main competitors – remains in the negative ground although succeeding in keeping the trade above/at the 100.00 handle.

US Dollar supported around 100.00… for now

The index is about to close its second consecutive week with losses, meandering the area of 5-week lows in the 100.00 neighbourhood in response to a wave of selling pressure after the Fed’s dovish hike last Wednesday

Recent mixed results from the US docket did nothing to curb the bearish sentiment around the greenback, as Consumer Inflation Expectations tracked by the Reuters/Michigan index dropped to record lows despite Consumer Sentiment edged a tad higher for the current month.

Earlier in the session, Industrial Production came in flat during last month, although Manufacturing Production expanded more than initial estimates.

Minneapolis Fed N.Kashkari said earlier that it remains unclear whether gradual rate hikes now are better than aggressive hikes later, adding that the Fed should resume hikes only after it seen market reaction to balance sheet plan.

Adding to the offered bias around USD, yields are now testing lows post-FOMC, with the 10-year reference putting the 2.50% key level to the test.

All in all, the 100.00 handle seems to be weathering the FOMC-storm quite well for the time being. In case this support is cleared, the door should open for a test of YTD lows near 99.20. Upcoming Fedspeak and data releases, but mainly more details on Trump’s fiscal plans should be the next big themes surrounding the buck in the weeks to come.