US Dollar rebounds from lows, holds above 97.00

The US Dollar Index, which tracks the greenback against its main competitors, is about to end the day hovering around 97.05/15, modestly lower compared to yesterday’s closing price.  Despite pulling back it if moved sharply off daily lows that reached during the European session at 96.83 and it has also remained above the key level 96.80 area.

Momentum turned in favor of the US after the release of U data, that showed an increase in Conference Board Consumer Confidence data above expectations and particularly after New Home Sales reached a 7-year high after rising 3.5%. The negative side was the flash reading of the Markit Services PMI that dropped to 50.9 (it was expected at 52.0). But attention is likely to continue on Wednesday’s FOMC decision and Friday’s US GDP  numbers.

In Wall Street, stocks are mixed. The Dow Jones was falling 0.28% while the Nasdaq was gaining 0.16%. In Europe, stocks finished with minor gains. In the bond market, yields moved marginally. The general tone across financial markets has been quiet during the last 15 hours, with limited price action including the forex market.

USD Index technical levels

To the downside, the key support could be seen around 96.75/80 (Jul 21 low / Jul 11 high) and then 96.45 (20-day moving average). On the opposite direction, resistance could be located at 97.30 (July 20 high) and 97.62 (Jul 25 high).