US Dollar Index sticks to gains near 97.50, Powell on sight
- The index stays bid in the mid-97.00s on Wednesday.
- US New Home Sales contracted 8.9% in October.
- All eyes on Fed’s Chief Jerome Powell later in the day.
The greenback keeps daily gains and the consolidative mood unchanged so far today around the 97.50 region when tracked by the US Dollar Index (DXY) following US releases and ahead of Powell’s speech.
US Dollar Index now looks to Powell
The index keeps its weekly march north unabated and is looking to consolidate the recent break above the critical barrier at 97.00 the figure, at the same time paving the way for a potential test of YTD highs near 97.70 (November 12).
DXY stays bid despite advanced Q3 GDP figures left no room for surprises today, while October’s New Home Sales contracted 8.9% MoM, or to 544K units, missing forecasts.
In the meantime, the mood around the buck should be determined by developments in Europe (Italian politics, Brexit) and the US-China trade spat.
Moving forward, Chief J.Powell is due to speak at the Economic Club in New York, with attention on the future moves of the Federal Reserve.
US Dollar Index relevant levels
As of writing the index is gaining 0.13% at 97.49 facing the next hurdle at 97.54 (high Nov.27) seconded by 97.69 (2018 high Nov.12) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop). On the flip side, a break below 96.78 (21-day SMA) would open the door to 96.32 (low Nov.22) and finally 96.04 (low Nov.20).