US Dollar Index challenges 95.00 on Powell’s speech

• The index comes under pressure near 95.00 on Powell’s speech.
• Yields of the US 10-year reference drop and test 2.83%.
• Powell sees no risks of economy overheating at his speech in JH.

The US Dollar Index (DXY), which gauges the buck vs. a basket of its main competitors, is now facing some extra selling pressure and is clinching fresh daily lows in the vicinity of the 95.00 handle.

US Dollar Index offered post-Powell

The index drops further at the end of the week following the speech by Fed’s J.Powell at the Jackson Hole Symposium.

In fact, Powell keeps considering rate hikes as appropriate for the time being as long as growth accompanies, while it acknowledged there is no risk of overheating. He added that the string momentum in the economy is expected to continue.

Chief Powell also sees no signs of inflation moving above the Fed’s target, while he stressed that he will do whatever it takes in case inflations expectations drift”.

Earlier in the day, US Durable Goods Orders contracted at a monthly 1.7% in July, while core Orders expanded 0.2% inter-month, both prints disappointing previous expectations.

US Dollar relevant levels

As of writing the index is losing 0.51% at 95.14 facing the immediate support at 94.96 (55-day SMA) followed by 94.93 (low Aug.22) and finally 94.08 (low Jul.26). On the upside a break above 95.49 (high Aug.23) would aim for 96.01 (10-day SMA) and then 96.98 (2018 high Aug.15).