The US dollar resists despite the weak data

• The US dollar index settles over 106.50 after the weak American PMI data.
• The US services sector is unexpectedly shrinking in February, which affects morale.
• Consumer morale decreases, while inflation expectations increase, adding pressure on the US dollar.

The US dollar index (DXY), which tracks the performance of the US dollar against six major currencies, sets out slight gains on Friday, trading around 106.50. This slight recovery comes after the primary disappointing PMI data, indicating that the American economy no longer exceeds the euro area or other major economic blocs. The decrease in the services sector has affected market morale, although manufacturing gains have made some balance.

Daily market engines: The US dollar adheres to the gains despite the weak PMI data

• The American Manufacturer Manager Index for February exceeds expectations at 51.6, exceeding the consensus of 51.5 and January 51.2.
• The American Service Manager Index decreases to the shrinkage area at 49.7, less than 53.0 and 52.9 expectations in January.
• The Michigan University Consumer Index decreases to 64.7, missing 67.8 expectations and previous reading.
• Consumer enlargement expectations for 5 years rise to 3.5%, above the consensus of 3.3% and previous reading.
• The markets continue to monitor the threats of definitions, with the possibility of increases on the horizon during the weekend. Anything that may raise fears of a trade war between the United States and China may reduce the losses of the US dollar.

Technical expectations of the US dollar index: attempts to recover with a decline in landfill declining

The US dollar index has regained some momentum, hovering around 106.50 as it tries to restore the simple moving average for 100 days at 106.60. Despite the slight recovery, technical indicators are still in a declining area.

The RSI Index (RSI) and the index of spacing and rapprochement (MACD) shows slight improvement but still in negative areas. The next resistance level is close to 107.00, while support stabilizes about 106.00. The decisive penetration below the level of 106.00 may confirm a short -term future look.