US Dollar bounces off 88.60 ahead of US data
- DXY plummeted to the 88.60 area.
- Higher US CPI failed to boost USD.
- US Philly index, Empire State index next on tap.
The greenback, in terms of the US Dollar Index (DXY), is trading well into the negative territory on Thursday, although it seems to have found some dips-buyers in the 88.60 area.
US Dollar focused on US data
The index has accelerated the weekly correction lower after breaking below the critical 89.00 support today, all against the backdrop of the continuation of the strong selling bias among traders.
Higher-than-expected inflation figures tracked by the CPI in January gave an ephemeral boost to the buck above the 90.00 limestone on Wednesday, although market participants quickly reverted the move.
In fact, poor retail sales figures during last month should weigh down on GDP figures for the first quarter, hurting investors’ sentiment and intensifying at the same time the sell-off.
In the meantime, the debate between three or four rate hikes by the Federal Reserve this year stays wide open, although market participants appears far from convinced and this uncertainty keeps the US Dollar under increasing pressure.
Later in the NA session, regional manufacturing gauges by the Philly Fed index and the Empire State index are due plus initial claims and producer prices for the month of January.
US Dollar relevant levels
As of writing the index is losing 0.34% at 88.72 with the initial support at 88.55 (low Feb.2) seconded by 88.42 (2018 low Jan.25) and finally 86.85 (weekly trend line off 72.70). On the upside, a break above 90.57 (high Feb.8) would target 90.70 (high Jan.22) en route to 90.98 (high Jan.18).