Dollar struggles near 94.00 mark

6 July, 2018

A modest recovery attempt, led by US ISM PMI and FOMC minutes, quickly runs out of steam. Escalating US-China trade war fears exerts some fresh downward pressure on Friday. Investors focus shifts to the keenly watched US monthly jobs data for some fresh impetus.

The greenback, as measured by the US Dollar Index held on the back-foot and is currently placed near the 94.00 mark, within striking distance of over one-week lows touched yesterday.

Thursday's release of upbeat US ISM non-manufacturing PMI and the latest FOMC meeting minutes, reinforcing prospects of gradual monetary policy tightening, did provide a minor lift to the buck.

The uptick quickly ran out of steam amid the ongoing trade spat between the world's two largest economies. The US imposed tariffs on $34 billion of Chinese imports and China retaliated by applying tariffs to the same value of US goods at the same rate. 

The US President Donald Trump has already warned to impose an additional $500 billion tariffs if China opts for retaliatory measures and escalating risk of a potential full-blown trade war kept the USD bulls on the defensive. 

Investors now turn their attention to the closely-watched US monthly jobs report (NFP), due later in the day, for some fresh impetus, albeit the post-data momentum is likely to be restrained by persistent trade tensions.

Technical levels to watch

A follow-through weakness below the 94.00-93.95 region now seems to pave the way for an extension of the weakening trend further towards the 93.60-55 support area. On the flip side, any meaningful bounce back above 94.20 level is likely to confront resistance near the 94.40-45 region, which if cleared might assist the index to aim back towards conquering the key 95.00 psychological mark.


Source   Presented by HYCM
Price touches down at the balance line

On Wednesday the 4th of December, the euro was down by four points at the end of trading. In the American session, bulls pushed the price to...

EURUSD: growth to 45th degree expected

On Friday the 29th of November, the euro was up at the end of trading. It was a short day in the USA, and therefore the volume of trading operations...

EURUSD: bears met with resistance

According to the wave structure, the decline did not come to an end. The fall stopped at the 67th degree, with the trend line from the minimum at 1.0879...


EURUSD trying to find a balance point

On Monday the 4th of November, trading on the euro closed down. The gains made by bulls on long positions on Friday above 1.130 were erased on...

EURUSD: bears poised to attack

On Monday the 28th of October, trading on the euro closed up. This was probably a technical correction following Friday's drop. This correction...

EURUSD: bears trying to take control

On Tuesday the 22nd of October, trading on the euro closed down. Trading on the US dollar was mixed during the European session, which was brought...


EURUSD: bulls ready for new highs

We're expecting fresh highs today followed by a rebound to the LB. The pair is currently trading around the trend line, so it will be interesting to see...

EURUSD: 1.0893 on the horizon

On Wednesday the 25th of September, trading on the euro closed down. The single currency dropped to 1.0938 against the greenback...

EURUSD: consolidating on the balance line

On Tuesday the 24th of September, trading on the euro closed up. The pound came out on top yesterday, making gains in the wake of the...