US Dollar Extends the Upside, Flirts with 95.00

US Dollar Extends the Upside, Flirts with 95.00

22 April 2016, 17:42
Roberto Jacobs

US Dollar Extends the Upside, Flirts with 95.00

The greenback, tracked by the US Dollar Index, is prolonging its weekly advance to the boundaries of the 95.00 handle.

US Dollar shrugs off poor data, 95.00 still caps

The index keeps its buoyant tone during the second half of the week and remains well on track to close its second week with gains.

Today’s upside has been bolstered by rumours that the BoJ could be discussing negative rates to implement on its lending programme, likely to be announced at its meeting next week.

Data wise in the US docket, advanced Markit’s manufacturing PMI has missed forecasts for the current month, dropping to 50.8, the lowest level since September 2009.

USD is thus extending the bounce off recent 2016 lows in the 93.60 area, although a more convincing break above the 95.00 handle still remains elusive.

US Dollar relevant levels

The index is up 0.34% at 94.92 with the next hurdle at 95.21 (high Apr.14) followed by 95.51 (38.2% Fibo of 98.59-93.62) and then 95.94 (55-day sma). On the flip side, a breach of 93.62 (2016 low Apr.12) would open the door to 93.16 (monthly low May.15 2015) and finally 92.52 (monthly low Aug.24 2015).


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