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US Dollar Index struggles for direction around 97.00

  • Price action around the index remains inconclusive.
  • Yields of the US 10-year note dropped to 2.60%.
  • Durable Goods, Producer Prices next on the docket.

The greenback is exchanging gains with losses in the middle of the week, always gyrating around the key handle at 97.00 the figure when measured by the US Dollar Index (DXY).

US Dollar Index looks to data, Brexit vote

The index remains under pressure and unable to gather some serious traction against the backdrop of a 4-day negative streak, although it seems to have et strong contention in the 97.00/96.90 band for the time being.

The greenback stayed apathetic following comments by US trade negotiator R.Lighthizer, who talked down the likeliness of a deal in the near term, stating that there are still ‘major issues’ unresolved.

On another side, the buck could not take any advantage following another defeat of the UK government at the House of Commons on Tuesday, where PM May’s Brexit plan was rejected once again.

Today’s US calendar includes Durable Goods Orders and Producer Prices for the month of February.

What to look for around USD

The optimism around a positive outcome in the US-China trade front faded somewhat in past days and hopes have taken a hit following recent comments from US R.Lighthizer. Despite Payrolls were a fiasco when comes to job creation during last month, the lower unemployment rate and wage inflation expanding at a decade-high pace keep limiting the occasional downside in the buck. Investors, in the meantime, continue to scrutinize the probable change in the Fed’s rate path as well as any re-assessment of the ongoing QT.

US Dollar Index relevant levels

At the moment, the pair is gaining 0.02% at 97.00 and a break above at 97.71 (2019 high Mar.7) would open the door to 97.87 (monthly high Jun.20 2017) and finally 99.89 (monthly high May 11 2017). On the flip side, the next support lines up at 96.92 (low Mar.11) seconded by 96.74 (21-day SMA) and then 95.82 (low Feb.28).