US dollar offered despite data
Dollar optimism following the announcement of the White House's tax reform proposal faded quickly, prompting sellers to move in and out of the USD.
In addition, S.Mnuchin's comments that the government is committed to obtaining fiscal legislation at the end of the year also appear to have been insufficient to shore up the upward bias in DXY.
In addition, in today's keynote address, KC Fed E.George (aggressive 2019 voter) also found it appropriate to have further gradual rate hikes, adding that the US economy will continue to grow in the coming years. As for the prospects for an additional adjustment, the CME Group's FedWatch tool now sees the probability of a December rate hike above 76%.
In the US data space, the August trade deficit narrowed more than expected, while the third quarter GDP review now sees the economy expand by 3.1%, improving consensus.
Relevant levels of the US dollar
At this time, the index is losing 0.31% to 92.98 compared to immediate support at 92.48 (SMA of 10) followed by 92.33 (SMA of 21 days) and finally 91.53 (minimum of September 20). On the upside, a break above 93.66 (28 September high) would open the door to 94.03 (23.6% Fibo of the fall of 2017) and finally 94.14 (16 August high).
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