U.S. Dollar Index Dips Back Below 105.00
Alex Boltyan | Jun 30, 2022 03:32PM ET
The US Dollar Index, which measures the value of the dollar versus a basket of currencies, turned lower and fell sharply during the New York session, pulling back from a two-week high of 105.55 to a low of 104.64.
The DXY is trimming weekly gains after two daily advances in a row as the dollar weakened across the board following US data and amid month-end profit-taking. At the time of writing, the DXY is trading at 104.70, 0.4% below its opening price.
The US Core Personal Consumption Expenditure Deflator increased by 0.3% in May, below market expectations of a 0.4% increase. The Core PCE Price Index increased by 4.7% YoY, also below the investor estimates showing a deceleration of the preferred Federal Reserve’s estimate of inflation. Data also showed consumer spending rose just 0.2% in May, and real personal spending dropped 0.4%.
Meanwhile, the US jobless claims came in at 231K in the week ending Jun. 24, missing market expectations of 228K, while the underlying trend in claims moved slightly higher, suggesting that the labor market is moderating to the Fed’s contractive policies.
According to the daily chart, the DXY holds a bullish short-term perspective, with its indicators holding into positive territory, although losing momentum after the recent decline.
The RSI is heading south but well above its midline, and the MACD printed a lower green bar, indicating decreasing buying interest.
On the upside, the following resistance levels can be seen at the 105.50 area, followed by the June 15 high of 105.78. Beyond this level, the DXY would be trading at its highest in nearly 20 years, targeting the 106.00 area.
Alternatively, immediate support is seen at the 104.60 area, followed by the 104.00 zone, where the 20-day SMA reinforces the psychological level.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.