The Dollar Index takes its floor from a Fed non-voter
The Dollar Index has spent Thursday building a floor just above 98.50 and defending it with everything the calendar had to offer, and the entire effort is worth roughly a tenth of a point.
The Dollar Index has found a floor just above 98.50 on Thursday, holding it with everything the calendar offered. This effort resulted in a gain of about a tenth of a point. A five-year high in Philadelphia manufacturing, a beat in jobless claims, and a hawkish regional Fed voice contributed to the index's rise, reaching a five-year high.
However, the factors that built the floor will not sustain it. The session low, just above 98.50, was reached in the London morning hours before any releases, and the recovery off it already began by the 12:30 GMT block. Initial jobless claims came in at 206K against a consensus of 210K, and the Philadelphia Fed's August manufacturing survey read 47.4, significantly higher than the consensus of 25 and the prior 41.4.
The index still trades below its 50-day Exponential Moving Average (EMA) and around eight tenths of a point below the 200-day. The hawkish non-voter on television does not pose much of a challenge to this situation.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
