US Dollar Index Trims Losses, Retakes 95.60

The US dollar Index (DXY), now alternates gains with losses around the 95.60 region. After bottoming out in the vicinity of the 95.40 level, the index managed to regain some composure and trim its earlier losses.

The knee-jerk reaction in the buck, in the meantime, looks underpinned by another negative performance in US yields, while mixed results from the US calendar on Thursday added to the downbeat mood in DXY.

Initial jobless claims rose more than expected by 286000 in the week to 15 January, while the Philly Fed bettered consensus at 23.2 for the current month. In addition, Existing Home Sales dropped 4.6% MoM in December to 6.18M units.

Now, the index is losing 0.09% at 95.53 and a break above 95.83 (weekly high Jan.18) would open the door for a 96.46 (2022 high Jan.4) and finally 96.93 (2021 high Nov.24). On the flip side, the next down barrier emerges at 94.78 (100-day SMA) followed by 94.62 (2022 low Jan.14) and then 93.27 (monthly low Oct.28 2021).