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US dollar index retreat from week high above 99.00

The greenback has risen today, and the Dollar Index (DXY) has made it’s new weekly high above 99.00.

The index reached its multi-day high above 99.00 as the EUR/USD fell against the dovish ECB stance. The ECB reduced the deposit rate to -0.50% and announced a new bond purchase program, as well as a staggering deposit system. At the same time, the central bank lowered its GDP and inflation forecasts for 2019/21.

The US consumer price index rose 0.1% YoY in August and 1.7% YoY (1.8% expected). Excluding the volatile food and energy components, consumer prices surprised with a rise of 0.3% (month) and 2.4% (year). The dollar index retreated from the 99.10 area, while the US 10-year bond yield fell from 1.78% to 1.66%.

Also read  The Dollar is not going to give up leadership in forex

Technical Levels

S1  98.27

S2  98.08

S3  97.70


R1  98.84

R2  99.22

R3  99.41



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