US Dollar Index extends recovery and rises to 93.75

• DXY erased most of post-Fed losses. 
• US economic data boosted the greenback. 

The greenback was trading mix on Thursday, rising modestly against commodity currencies and the euro and falling versus the yen and the pound. US economic data helped offset the negative tone of the dollar that followed yesterday’s Fed decision. 

Central banks and data

Earlier today the Bank of England and the European Central Bank left its monetary policy unchanged while yesterday the Federal Reserve rose the key rate. That would be a positive for the US dollar but all the moves were expected and already priced in, so markets did not react to rate developments. Not even an improvement in GDP growth projections from the ECB helped the euro. 

EUR/USD was near the level it had before the release of the FOMC statement. The pair climbed earlier today momentarily above 1.1850, to the highest in a week but then reversed and it was last seen at 1.1770/75. The slide of the euro boosted the US Dollar Index that moved above 93.50 after it bottomed on European hours at 93.25, the lowest in a week. 

The DXY was back close to pre-Fed levels. The intraday tone favored the upside, but on a wider perspective some bearish pressure was still seen. 

The greenback was helped today by the retail sales report (up 0.8% against expectations of a 0.3% gain). The last report was the preliminary Markit PMI that showed mix numbers. While the Service sector index dropped to the lowest in 15 months, the manufacturing rebounded unexpectedly. 

DXY Levels to watch 

To the downside, immediate support is seen at 93.50,  followed by 93.35 (20-SMA) and 92.95 (Dec 05 low).  On the upside, resistance might now be seen 93.75 (20 SMA in four hours chart), 93.95 and 94.10/15 (weekly high / downtrend line from March).