FXStreet (Edinburgh) – The greenback, tracked by the US Dollar index, has recovered the overnight drop to session lows near 97.10 and is currently trading in the positive ground in the 97.40/45 band.
US Dollar capped near 97.60
The dollar lost upside momentum after the key US ISM Manufacturing surprised investors to the downside for the month of July, coming in at 52.7 vs. 53.5 forecasted and previous. Of note was the poor print from the ISM Manufacturing Employment, dropping to 52.7 from 55.5. Further data showed the Construction Spending expanding 0.1% on a monthly basis during June.
On the bright side, Personal Income and the inflation figures gauged by the PCE surpassed estimates while Personal Spending rose 0.2%, matching consensus. The index has managed to revert the initial negative tone, looking to extend the recent recovery on its way to another test of the critical barrier at 98.00.
US Dollar relevant levels
As of writing the index is gaining 0.06% at 97.39 and a breakout of 97.97 (high Jul.17) would aim for 98.16 (high Jul.20) and finally 98.46 (high Apr.21). On the flip side, the immediate support lines up at 97.97 (high Jul.17) followed by 98.16 (high Jul.20) and then 98.46 (high Apr.21).
(Market News Provided by FXstreet)