The US Dollar Index – which tracks the buck vs. a basket of its main rival currencies – has recovered the smile following auspicious results from today’s US results and is now hovering over tops around the 93.00 handle.

US Dollar flirts with highs on data

The buck regained the positive territory after US producer prices rose more than expected during last month. Headline producer prices rose 2.6% in a year to September and 0.4% inter-month. In addition, core producer prices rose 0.4% MoM and 2.2% on a yearly basis.

Further results saw initial claims rising to 243K WoW, also bettering consensus and taking the 4-week average to 257.50K from 267.00K.

In the meantime, investors seem to have left behind yesterday’s dovish FOMC minutes, prompting DXY to revert a 4-day negative streak and at the same time re-shifting their focus on the upcoming critical releases on Friday: CPI and retail sales for the month of September.

Later in the NA session, FOMC’s permanent voters L.Brainard and J.Powell are due to speak.

US Dollar relevant levels

As of writing the index is gaining 0.27% at 93.04 and a breakout of 93.42 (10-day sma) would open the door to 94.03 (23.6% Fibo of the 2017 drop) and finally 94.27 (high Oct.6). On the flip side, the initial support emerges at 92.64 (low Oct.12) seconded by 91.53 (low Sep.20) and then 91.01 (2017 low Sep.4).



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