US Dollar Index rebounds from 1-month lows
- US dollar trims losses during the US session, while US stocks remain at lows.
- DXY erases losses and climbs back above 96.40.
The US Dollar Index dropped earlier today to 96.20, the lowest level since November 20. After the beginning of the American session the greenback recovered strength and trimmed losses across the board, except against the yen that remains supported by risk aversion.
Recently the DXY rose to 96.72, still far from Wednesday’s closing price but significantly above daily lows. Yesterday, after the FOMC decision, characterized as a “not so dovish rate hike” boosted the US dollar but the rally was short-lived, and today on European hours it suffered a sharp decline.
In Wall Street, the Dow Jones is falling 0.80%, and the Nasdaq is down 0.82%. The 10-year yield stands at 2.77%, practically flat for the day and significantly below the level it had a month ago.
DXY Short-term levels to watch
From a technical perspective, the DXY has risen back above the key 96.40 area that again has become a key support. It if drops below, the daily low at 96.20 would be exposed. The next support level could be seen at 96.00/05 (Nov 2 low). On the upside, the immediate resistance is 96.75/80 followed by 97.20 and 97.40.