The US Dollar index failed to get a lift from much stronger Durable Goods Orders from the U.S. economy. Traders were expecting a gain of 0.5% but the actual number came in at 1.9%. It’s possible that recent ISM manufacturing strength meant traders were not too surprised by the result.
Consumer Confidence is the next release and the market is looking for a 102 print after 101.8 last month. We may see a more pronounced move in the dollar once that number is out. There is also a cloud over consumer numbers because of rising virus cases in the country and positive retail sentiment may be seen as a lagging source of hope.
The U.S. dollar seems unable to find a clear direction as the talks over a second stimulus package have waned but virus cases are on the rise across the globe and the greenback’s safe haven status is also not in effect. This could be related to the U.S. election, which is only a week away and foreign investors may be taking profits and adjusting their U.S. holdings until the result is known.
Tomorrow sees a Bank of Canada interest rate decision and a similar release from the Bank of Japan on Thursday, but it will be later that day where the more important ECB rate decision takes place. The Euro has a higher weighting in the dollar index and this will be a key driver ahead of the election.
Dollar Index Technical Outlook
The US Dollar index is still struggling at the uptrend line from the mid-September lows and a bearish close today would threaten further lows ahead. The next support level comes in around the 92.00 level and that would be the target. A stop for shorts could go above the day’s high. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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Dollar Index Daily Chart
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