US Dollar recovery stalled near 95.70

The rebound in the US Dollar Index seems to have run out of steam in the 95.75/70 band today despite positive results from the US docket.

US Dollar supported near 95.40

After bottoming out in the vicinity of the 95.40 region, or fresh multi-month lows, the index gathered some traction albeit losing upside momentum in the 95.70/75 area.

Auspicious results from the US calendar saw US economy expanding at an annualized 1.4% during the first quarter, beating initial estimates. Further data showed US citizens applying for unemployment benefits rising to 244K on a weekly basis.

Yields of the US 10-year benchmark is trading in fresh 6-week tops following the data releases and increasing expectations of further tightening by the Federal Reserve by year-end. In fact, CME Group’s FedWatch tool places the probability of higher rates at the December meeting at almost 48% based on Fed Funds futures prices.

Later in the day, St. Louis Fed J.Bullard (2019 voter, centrist) is due to speak, ahead of tomorrow’s personal income/spending, PCE, and the final print of the consumer sentiment.

US Dollar relevant levels

The index is losing 0.24% at 95.55 facing the immediate support at 95.43 (2017 low Jun.29) followed by 94.95 (low Sep.22 2016) and finally 94.05 (low Aug.18 2016). On the flip side, a breakout of 96.31 (high Jun.28) would target 96.79 (10-day sma) and then 97.56 (high Jun.15).