US Dollar regains 89.00 but stays offered

- DXY bounces off lows and retakes 89.00.

- US Q4 GDP came in below expectations.

- Gains so far capped around 89.50.

The greenback, tracked by the US Dollar Index (DXY), remains entrenched into the negative ground this week although at least it managed to come back to the 89.00 neighbourhood.

US Dollar receded from 89.50

Trump´s comments supporting the greenback on Thursday motivated the index to climb as high as the 89.50 area, although the up move quickly fizzled out and the bearish sentimernt prevailed once again. His comments at the WEF in Davos came in direct contrast with those by S.Mnuchin just a day before, when he favoured a weak buck.

USD touched daily lows around 88.70 after the preliminary reading of US GDP for the fourth quarter came in at 2.6% vs. 3.0% initially forecasted, although GDP prices surprised to the upside, gaining 2.4%. Still in the US docket, headline durable goods orders gained a monthly 2.9%, crushing consensus for a 0.8% advance, while core orders also surpassed prior surveys, up 0.6% in December.

The index, in the meantime, is closing its sixth consecutive week with losses (three negative months in a row), already shedding around 6% since late-2017 peaks above the 95.00 handle.

US Dollar relevant levels

at the moment, DXY is down 0.31% at 89.08 and it faces the next support at 88.73 (daily low Jan.26) seconded by 88.43 (2018 low Jan.25) and 88.00 (psychological level). On the other hand, a break above 89.58 (high Jan.25) would aim for 90.98 (high Jan.18).