US DOLLAR OUTLOOK: DXY EXTENDS SLIDE ON DISAPPOINTING JOBLESS CLAIMS, Q2 GDP REPORT
- US Dollar remains under pressure following yesterday’s Fed rate decision
- DXY Index hitting session lows as jobless claims, Q2 GDP data disappoint
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The US Dollar continues to trade on its back foot with the broader DXY Index hitting fresh month-to-date lows this morning. US Dollar weakness gained quite a bit of momentum yesterday in wake of the Fed meeting and Chair Powell press conference, which detailed that the US economy is still a ways away from reaching the substantial progress goalpost.
This is being underscored by some disappointing data just crossing the wires on weekly jobless claims and second quarter GDP. Initial jobless claims and continuing claims both ticked higher and missed the consensus forecast. Headline GDP came in at 6.5% for Q2, which was below expectations of 8.4%.
DXY INDEX – US DOLLAR PRICE CHART: 4-HOUR TIME FRAME (02 JUL TO 29 JUL 2021)
Chart by @RichDvorakFX created using TradingView
The disappointing data in wake of the FOMC likely stands to keep downward pressure on the US Dollar and broader DXY Index. This potentially opens up the door for the DXY Index to extend its slide toward its 50-day simple moving average near the 91.50-price level. That said, there is high-impact event risk on the docket tomorrow with the release of core PCE data scheduled for 12:30 GMT.
— Written by Rich Dvorak, Analyst for DailyFX.com
Connect with @RichDvorakFX on Twitter for real-time market insight