US Dollar Index climbs to session tops near 97.20 ahead of data
|- The index moves higher and re-tests the 97.20 area.
- Yields of the US 10-year note rebounds to the vicinity of 2.92%.
- ADP report, Factory Orders, Initial Claims, ISM Non-manufacturing on the docket.
The greenback, in terms of the US Dollar Index (DXY), has resumed the upside in the second half of the week and is now flirting with weekly peaks near 97.20.
US Dollar Index looks to data, Europe
Following yesterday’s doji-like session, the index has now regained some poise and is testing weekly tops in the 97.20 region, always on the back of rising concerns in the Italian political scenario, Brexit uncertainty and renewed US-China trade effervescence.
In fact, the risk-off sentiment appears to have returned to the markets in past hours following the lack of progress in Italy regarding the 2019 budget proposal as well as in the Brexit negotiations.
In addition, yields of the key US 10-year reference have extended the recent breakdown of the critical 3.0% handle and tested 2.88% earlier in the session, or fresh 3-month lows.
It will be a very interesting day in the US calendar, as the ADP report is coming up next seconded by the usual weekly report on the labour market, October’s Factory Orders, Markit’s final Services PMI for the month of November and the ISM Non-manufacturing during the same period.
US Dollar Index relevant levels
As of writing the index is up 0.10% at 97.13 and a break above 97.53 (high Nov.28) would open the door to 97.69 (2018 high Nov.12) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop). On the flip side, immediate contention emerges at 96.32 (low Nov.22) followed by 96.04 (low Nov.20) and finally 95.68 (low Nov.7).
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