- DXY pulls back and comes back to test the 92.50 zone.
- Initial claims increased by 419,000 from the previous week.
The dollar extends the downward movement and falls to session lows around 92.50 when followed by the US dollar index (DXY).
US dollar index retreats from recent highs
The index lost more ground and fell back to the 92.50 zone due to the further improvement in the risk space.
Yields on the key US 10-year benchmark are also down after briefly testing the area above 1.30% and assisting with renewed DXY bearish momentum.
Further selling pressure hit the dollar after the ECB meeting left key rates unchanged, as expected, and both the Governing Council and President Lagarde at their press conference did not sound as dovish as expected.
The economic agenda also did not support the dollar after weekly claims increased by 419,000 (from 368,000) and the Chicago Fed’s national activity index fell to 0.09 in June (from 0.26).
Now, the index is losing 0.27% at 92.52 and faces the next support at 92.46 (23.6% Fibonacci from November to January rally) followed by 92.00 (monthly low on July 6) and then 91.51 (weekly low on July 23). of June). On the upside, a break above 93.19 (July 21 monthly high) would open the door to 93.43 (March 21 high) and finally 94.00 (round level).