US Dollar Index offered below 96.00
|- The index comes under pressure below the 96.00 handle.
- US 10-year yields return to levels above 3.20%, session highs.
- US Existing Home Sales contracted more than expected during September.
The greenback, in terms of the US Dollar Index (DXY), is now trading on the defensive and is returning to the 95.80 region.
US Dollar Index upside capped around 96.00
The index is now coming under some selling pressure following a better tone in the risk-associated space and poor results from the US housing sector.
In fact, sellers turned up in the greenback after EU’s Moscovici favoured further talks with Italy in order to reduce tensions after the recently submitted 2019 draft budget, helping EUR/USD to rebound from daily lows.
The knee-jerk in the buck comes amidst a bounce of yields in the US 10-year note to fresh tops beyond the 3.20% level following the improved mood in the riskier assets.
USD is also deriving selling pressure from results in the US housing sector, where Existing Home Sales contracted at a monthly 3.4%, more than initially estimated, to 5.15 million units.
Looking ahead, speeches by Atlanta Fed R.Bostic (voter, centrist) and Dallas Fed R.Kaplan (non voter, centrist) are coming up next.
US Dollar Index relevant levels
As of writing the index is losing 0.17% at 95.81 and a breakdown of 95.48 (10-day SMA) would open the door to 95.22 (21-day SMA) and finally 94.79 (low Oct.12). On the upside, the next hurdle emerges at 96.09 (high Oct.19) seconded by 96.16 (high Oct.9) and then 96.98 (2018 high Aug.13).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.