US dollar index rises modestly after Tuesday’s selloff

The US dollar finished with mixed results in the market and measured by the US dollar index it rose modestly, recovering a small portion of Tuesday’s losses. During the Asian session greenback extended the slide but then it managed to erase losses.

The decline of the pound and loonie help the DXY to move to the upside. The index bottomed at 94.62, the lowest level in 10 days but then rebounded and rose toward 95.00. That area offered resistance and near the end of the session, it was trading at 94.90, up 0.15% for the day. On Tuesday the index that gauges the US dollar against its main competitors had the worst performance in a month and fell almost 1%.

Among currencies the pound (GBP) and loonie (CAD) were the worst performers on Wednesday. Lower-than-expected industrial production data and the testimony of Bank of England officials at a parliamentary hearing weakened the pound in the market. While the loonie (CAD) fell across the board after the Bank of Canada left interest rate unchanged. The kiwi (NZD) was the top performer among the most traded currencies.

Eyes on the ECB

The Beige Book in the US continued to point to “modest” growth and offered no surprise to investors. On Thursdays, jobless claims data will be released in the US.

The main economic event tomorrow will be in Europe with the European Central Bank meeting. Earlier, on Asian hours, Japanese GDP and Chinese trade data will be published.