I’ve been watching the USD Index looking for clues in anticipation of it’s next move. Today I got that clue from the current level of the USD Index, the GDP (preliminary report) and Pending Home Sales.. The USD index has made its second attempt over the last couple of sessions of breaking through resistance at the 80.50-55 area. This level halted the last attempted break back on April 2nd and now we are at the these same levels. Adding to this headwind was the release of a very disappointing GDP number this morning, a negative forecast (-0.5%) couple with a negative surprise (-1.0%), along with a big miss in Pending Home Sale, 0.4% actual vs. 1.0% forecast .
I think it may be time for the US dollar to catch it’s breath.
Categories: News and Commentary