Dollar index set for a big test today
The stage is set for US inflation and retail sales data that is to come later
The DXY is touching lows not seen since last September, as the dollar weakness from the last week in December continues on into the new year.
Looking at the daily chart, the index found support at the 50.0 retracement level where it bounced back up in September 2017 following a drop to lows of 91.011. The low for today is at 91.308 - just below the retracement level mentioned of 91.363.
If inflation or retail sales numbers (more importantly, inflation) disappoint, we could see further losses in the dollar as there's not much left that stands in the way from the dollar index falling further below 90. It's all happening on the day. EUR/USD breaking 2017 highs. GBP/USD nears 2017 highs. DXY nears 2017 lows. Good stuff.