The dollar is lower today, continuing with its recent downtrend begun Feb 14th. Over the course of nine trading days the U.S. Dollar Index is -1.14% as the small daily losses begin to add up. Near term support is seen at regular 50-point intervals (103.50, 103.00, 102.50 and 102.00) until a break below 102.00 which would signal a test as low as 100.50.
Since mid-February the dollar is lower against all G10 currencies: -2.79% vs. SEK, -1.86% vs. NZD, -1.41% vs. AUD, -1.32% vs. NOK, DKK, EUR, -0.81% vs. CHF, -0.76% vs. GBP, and minimal losses vs. CAD & JPY. The dollar is tracking U.S. Treasury yields lower after January’s CPI surprise gain (elevated inflation is seen keeping Fed rate policy on hold, postponing discussion of rate cuts and keeping upward pressure on treasury prices).
The U.S. economic calendar is full this week: Wednesday features Mortgage Applications and Q4 GDP; Thursday has Personal Income & Spending, Initial Jobless Claims, PCE and Pending Home Sales; Friday includes Consumer Sentiment and ISM Manufacturing.
