US Dollar Index climbs to session highs near 97.20
- The index picks up pace beyond the 97.00 mark.
- ECB dovish tone fuels the upside in DXY.
- FOMC minutes coming up next.
The demand for the greenback has now accelerated and is lifting the US Dollar Index (DXY) to fresh session highs in the proximity to 97.20.
US Dollar Index up on dovish ECB
A bout of upside pressure has triggered a rebound in the index from the area of daily lows in the 96.80 region to the current 97.10/20 on the back of the dovish message from President Draghi at the ECB event today.
EUR/USD is tumbling to fresh lows near 1.1230 (from earlier highs near 1.1290) after Draghi reiterated the risks on the economic outlook for the euro area remain tilted to the downside, adding that the Governing Council did not discuss TLTROs terms or the implementation of a tiered deposit rate system.
However, Draghi assessed that the possibility of a recession in Euroland remains low and noted that Brexit negotiations collaborate with the prevailing economic uncertainty.
Earlier in the session, US inflation figures tracked by headline CPI rose above estimates in March, while Core consumer prices missed expectations.
Looking ahead, the focus of attention is expected to shift to the release of the FOMC minutes from the last meeting.
US Dollar Index relevant levels
At the moment, the pair is advancing 0.16% at 97.18 and a break above 97.52 (high Apr.2) would expose 97.71 (2019 high Mar.7) and finally 97.87 (monthly high Jun.20 2017). On the other hand, immediate contention emerges at 96.84 (21-day SMA) seconded by 96.62 (55-day SMA) and finally 95.74 (low Mar.20).
