US Dollar Off Highs, Eases to 95.40
The US Dollar Index, which gauges the greenback vs. its main rivals, is now retreating to the 95.40 area after reaching daily highs at 95.47.
US Dollar deflates after poor PMI
USD saw its upside momentum losing impetus after the flash manufacturing
PMI tracked by Markit has come in at 50.5 for the current month,
missing consensus at 51.0 a tad lower than April’s 50.8.
The greenback has been deriving support from the offered tone prevailing
in the risk-appetite space in response to weaker crude oil prices,
managing to revert the initial negative bias.
In the same direction, St. Francisco Fed J.Williams argued that 2-3 rate
hikes for the current year ‘sounds about right’, propping up the daily
upside in the dollar.
US Dollar relevant levels
The index is up 0.09% at 95.42 and a break above 95.51 (high May 19)
would open the door to 96.27 (100-day sma) and then 96.42 (high Mar.28).
On the flip side, the next support aligns at 94.84 (55-day sma) ahead
of 94.15 (20-day sma) and finally 93.65 (low May 11).
