While the U.S. dollar index (DXY) had been sharply higher ahead of President-elect Donald Trump’s first news conference since being elected, those gains evaporated and the dollar is currently down 0.63% at 101.40.
Trump’s news conference was absent of details regarding planned infrastructure spending. It appears as if the market had wanted further details regarding Trump’s policies.
U.S. stocks also slumped, particularly pharmaceuticals, as Trump mentioned support for competitive drug price bidding. Biotech plunged, with the iShares Nasdaq Biotechnology ETF (IBB) falling more than 3%. The S&P 500 is currently off the lows of the session and sitting with a 0.26% loss for the day.
The dollar is off sharply from the highs and now testing support at last week’s 101.30 low, which represents the low of a piercing pattern, a bullish candlestick signal. A drop below this level leaves the next target at 100.73.
With the dollar well off the high of the session, EUR/USD is back up against resistance at yesterday’s 1.0627 high. A break above this level would leave the next level to watch at 1.0670.