USD Index

Greenback Rallies On Mixed Economic Data

Posted Friday, December 21, 2018 by
Shain Vernier • 1 min read

Following a challenging Thursday session, the Greenback is on the march against the majors. Positive sentiment is flowing toward the USD, even though this morning’s pre-U.S. session economic numbers have come in mixed. Today’s price action may be a function of timing more than anything else, with investors electing to go into the Christmas break long dollars instead of commodities or stocks.

Earlier, a set of primary U.S. quarterly economic reports was released to the public. Here are the highlights:

Event                                                                     Actual     Previous       Projected

Core Personal Consumption (QoQ, Q3)           1.6%             2.1%               1.5%

GDP Annualized (Q3)                                           3.4%            3.5%                3.5%

GDP Product Price Index (Q3)                            1.5%             1.4%               1.4%

In addition to these figures, Durable Goods for November disappointed expectations, coming in at 0.8%. All in all, today’s numbers are largely mixed. Lagging GDP (Q3) is certainly not positive, but consumption and product price levels performed admirably. Given the recent strife of equities and the last 9 months of FED policy, it looks like traders are at ease with a slight dip in quarterly GDP.

A Bullish Friday For The Greenback: March USD Index Futures

March USD Index futures have broken positive, returning to a key area of topside resistance. At press time, this market is trading just above 96.200, poised to return to daily bullish territory.

March USD Index Futures (DX), Daily Chart
March USD Index Futures (DX), Daily Chart

Here are the levels to watch until the closing bell:

  • Resistance(1): Bollinger MP, 96.255
  • Resistance(2): Daily SMA, 96.315

Overview: On the heels of underperforming Q3 GDP, it is a bit of a surprise to witness such strength being shown by the USD. In the event we see a bullish close above the Daily SMA and Bollinger MP, an end-of-year bull run may be in the offing next week for the Greenback.

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