U.S Dollar Stalls Amid Upbeat Economic Data

Even though upbeat economic data gave the greenback an early boost on Friday, the greenback was down in London on Friday as the dollar headed for a second consecutive week of losses.

According to U.S. data released on Thursday, existing-home sales grew by 7% month-over-month in September to 6.29 million units.

However, DXY bulls failed to mount pressure on the 94 resistance band, in the wake of the better-than-expected data.

At the time of drafting this report, the U.S. Dollar Index that measures the greenback against a basket of other currencies fell by 0.04% to 93.71 index points

After the boldest move in over a week, bulls pause around 93.75 on the US Dollar Index. After having reversed course from the monthly low, the greenback gauge now seesaws within a choppy range.

Following a low at 92.32, the index broke through its opening range to surge past the resistance level of 93.40/45 into the end of the month.

The rally has been paused by resistance around the 94.47/65 price band, after a break of the October opening-range lows, today threatens a further correction in the greenback in the days ahead inside the confines of the broader uptrend.

With this, some currency traders are now becoming jittery on the safe-haven currency, as the dollar index declined 0.18% for the week and is expected to decline for a second week in a row.

The dollar has been weakening, which is in opposition to the narrative that global growth is cooling and the U.S. Federal Reserve is embarking on asset tapering. The Fed’s actions should support the dollar, and traders are wondering if we are at an inflection point.