FXStreet (Edinburgh) – The recovery in the greenback, tracked by the US Dollar Index, seems to have lost impetus around just ahead of the 96.00 handle on Friday.
DXY softer, focus onYellen
The positive sentiment towards a potential agreement between Greece and the EU Institutions in the next days has been taking a toll on the USD since early trade, dragging the index from the 96.60 area on Thursday to mutli-day troughs in the mid-95.00s today.
Today’s speech by Chairwoman J.Yellen did not spark any bullish attempt in the dollar either. She nonetheless stressed that a rate hike is coming later in the year, although unexpected events could impact on the timing of the raise. Yellen also emphasized the ‘transitory’ weakness during the first quarter, while she expects the economy to growth at a moderate pace throughout 2015. Regarding the key labour market, Yellen argued that it has indeed recovered, although there still remains some slack.
DXY relevant levels
As of writing the index is retreating 0.81% at 95.82 and a break below 95.08 (low Jun.26) followed by 94.86 (low Jun.30) and finally 94.72 (low Jun.29). On the flip side, the initial hurdle aligns at 97.24 (high Jul.7) followed by 97.34 (high Jun.5) and then 97.76 (high Jun.1).
(Market News Provided by FXstreet)