US Dollar dips on GDP miss
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- The US Dollar retreats a touch after a miss on GDP
- Small uptick in initial claims adds to dip.
- The US Dollar Index touch lower but stil labove 106.
The US Dollar (USD) is facing a small blow this Thursday after a downbeat surprise in the Gross Domestic Product (GDP) numbers was revealed. Overall in this third reading normally no real surprises are factored in. Still, the GDP Price Index fell from 2% to 1.7%, meaning that price pressure is further easing.
A second element that has made the US Dollar a touch softer is the small uptick in initial jobless claims. Although the initial claims only rose by 2,000, the fact that there is an uptick is a small break from the earlier consecutive decline we saw past few weeks. WIth markets being so bullish on the Greenback, this could be the start for some easing together with the US government shutdown over the weekend.
US Dollar Index technical analysis: off the highs
The US Dollar looks to be on a mission this week, surprising friends and foes with yet again a firm winning streak. Another weekly gain is almost locked in, making it an eleven straight week of gains for the US Dollar. With the US Dollar Index (DXY) breaking above 106.00, traders are eyeballing 107.00 next.
The US Dollar Index opened around 106.50, though the overheated RSI might make it difficult to maintain this level. Traders that want to hit a new 52-week high need to be aware that a lot of road needs to be covered towards 114.78. Rather look for 107.19, the high of November 30, 2022, as the next profit target on the upside.
On the downside, the recent resistance at 105.88 should be seen as first support. Still, it has just been broken to the upside, so it isn’t likely to be a strong barrier. Rather look for 105.12 to do the trick and keep the DXY above 105.00.
