FXStreet (Edinburgh) – The greenback, in terms of the US Dollar Index, is reclaiming the 94.80 area after dropping to session lows around 94.30.
DXY in 3-week lows
The index is retreating since Monday, and is not only surrendering post-Payrolls gains but also trading in levels last seen in mid-May. In spite of occasional bouts of buying interest, the dollar remains entrenched in the red territory, with gains capped around 95.20/30 and still suffering the effects of today’s comments by BoJ H.Kuroda.
However, there could be light at the end of the tunnel during the second half of the week for the USD, as US Retail Sales and Initial Claims (Thursday) and the Reuters/Michigan index (Friday) are all expected to have improved from their previous readings.
DXY levels to consider
The index is now retreating 0.36% at 94.81 and a breakdown of 94.32 (low Jun.10) would aim for 94.09 (low May 19) and then 93.27 (low May 18). On the other hand, the initial up barrier lines up at 95.45 (high Jun.9) followed by 96.91 (high Jun.5) and finally 97.68 (high Jun.1).
(Market News Provided by FXstreet)