The US Dollar re-tested its end of year highs yesterday with the US Dollar Index (DXY), an index which measures the value of the USD against a basket of foreign currencies, reaching out to session highs of 103.82 – the highest since the year 2002. The USD enters today its third consecutive day of gains for 2017 and is currently trading at the price of 103.32.
In terms of data, yesterday was quite optimistic, with German unemployemnt dropping substantially more than expected for December even thoigh the Unemployment Rate remained unchanged at 6%. German CPI also came well abvove expected levels. Later on Tuesday afternoon ISM Manufacturing was out at 54.7, up from a previous 53.2.
German data did little for the euro that weakened against the stronger USD yesterday with the EURUSD reaching daily lows of 1.0340. Realtime Forex Market Trend for the EURUSD is curently bearish (at -4) and daily scenario for Realtime Forex TraderTip sees more downside, but expects a dip towards 1.0374:1.0335 to be followed by a grind higher to 1.0448:1.0484 before the downside resumes.
Today’s economic docket holds EZ CPI estimates at 1100CET this morning and before that some revised PMI figures from Germany and France and UK Construction PMI just after that.