Dollar Down, Bears Eye Two-Month Lows
The US Dollar Index (DXY) has been declining for two consecutive days as hopes of a negotiated end to the Iran war boost risk appetite and lower oil prices prompt investors to scale back bets on Federal Reserve rate hikes. The index, which tracks the value of the US dollar against a basket of six major currencies, fell below 100.00 on Monday but failed to consolidate above that level.
The DXY is currently trading at 99.84 and has a weak momentum according to its daily chart. Technical analysis suggests that bears are targeting the two-month lows around 99.40, which was seen on June 15, and the 200-day Simple Moving Average (SMA) of 99.20.
On Tuesday, macroeconomic data released showed that JOLTS Job Openings declined to 7.359 million in June, below market expectations of 7.4 million. Additionally, Factory Orders for June contracted by 0.3%, missing expectations of a 0.2% increase.