Updates to the 4Q U.S. Gross Domestic Product (GDP) report may heighten the appeal of the greenback as the fresh revision is expected to show the economy grew an annualized 2.7% versus an initial forecast of 2.5%. How is the index trading at the moment? Stay current with the 28 March US Dollar Index Technical Outlook.
28 March, GKFX – The greenback, in terms of the US Dollar Index, is now picking up extra traction and moves to the area of daily highs in the 89.40/50 band.
US Dollar looks to data
The index is clinching its second consecutive day with gains and at the same time extending the bounce off recent multi-week lows in the 89.00 neighborhood.
Increasing risk-on mood after NK Kim Jong-un said in China he is ready to meet with President Trump is accompanying the outflows from safer assets, pushing USD/JPY higher and therefore supporting the demand for the buck. In addition, BoJ’s H.Kuroda has once again reiterated earlier in the Asian session the ‘lower for longer’ stance from the central bank, adding to JPY-selling.
Also supporting the risk-on trade, yields of the key US 10-year reference have dropped to fresh 7-week lows around 2.78%, where are now looking to stabilize.
US Q4 GDP figures
Looking ahead, US GDP figures for the October-December period are due next seconded by February’s Trade Balance and Pending Home Sales. Additionally, the EIA will publish its weekly report on US crude oil inventories.
28 March US Dollar Index Technical Outlook
As of writing the index is up 0.13% at 89.45 and a break above 89.74 (10-day sma) would aim for 89.88 (23.6% Fibo of 95.15-88.25) and then 90.44 (high Mar.20). On the flip side, next support aligns at 88.94 (low Mar.27) seconded by 88.44 (low Jan.26) and then 88.25 (2018 low Feb.16).
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