The US Dollar continues within its swift descent today as well, as the first few days for Trump and the executive orders he has given, despite being business oriented have in some way also helped to fuel worries of US protectionism and its impact on global trade. The US Dollar Index (DXY), measuring the strength of the USD against a basket of other major currencies, enters today its 2nd day of consecutive losses and is currently at 7-week lows. The DXY is currently trading at 99.86 and has already made session lows of 99.79 this morning.
On the daily price level, to the downside the DXY is approaching the 100 DMA support at 99.44, this same level is also the horizontal support from 8th December lows.
EURUSD is currently testing a key support level around the 1.0750 region, this level has provided significant support since last December. Tradertip daily scenario is foreseeing a possible sell off towards 1.0686:1.0718, however if to the contrary price moves manage to take on 1.0802 it would be deemed as bullish.
On today’s economic docket we’re looking ahead to UK GDP reading for the 4th quarter with the Y/Y figure expected to be confirmed at 2.1%. From the US session we then have US Advance Goods Trade Balance and the customary weekly jobless claims amongst other data.
