US Dollar Index depressed near 96.30
|- The index remains under pressure in the 96.30 region.
- Yields of the US 10-year reference bounces off lows near 3.06%.
- NAHB index, FOMC’s Williams next of relevance.
The US Dollar Index (DXY), which tracks the greenback vs. its main rivals, has started the week on the back footing and is trading close to daily lows in the 96.30 region.
US Dollar Index looks to trade, Brexit
The index is losing ground for the fifth session in a row on Monday although it is looking to regain some traction after bottoming out in the 96.30 area during early trade.
Diminishing concerns on the US-China trade front have been undermining any recovery attempts in the greenback while markets are now shifting their focus to the upcoming meeting between President Trump and China’s Xi Jinping at the G20 gathering later in the month.
The Dollar is also trading on the defensive as market participants continue to adjust to last week’s dovish comments from Fed’s VP R.Clarida. It is worth recalling that the sell off in the greenback picked up pace after Clarida said the Fed is close to the ‘neutral’ rate, while extra rate hikes should depend on incoming data.
Data wise today, the NAHB index is due next along with the speech by NY Fed John Williams (permanent voter).
US Dollar Index relevant levels
As of writing the index is losing 0.08% at 96.36 facing the next support at 96.32 (low Nov.19) followed by 95.68 (low Nov.7) and finally 95.66 (55-day SMA). On the other hand, a breakout of 96.60 (21-day SMA) would open the door to 96.74 (10-day SMA) and then 97.69 (2018 high Nov.12).
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