US Dollar Index on the defensive near 97.50
|- The index is giving away part of its recent gains and returns to 97.55/50 band.
- US 10-year yields look to extend the rebound from the 3.15% zone.
- Fedspeak, Brexit, Italy should drive the mood in the markets today.
The US Dollar Index, which gauges the greenback vs. its main competitors, is trading on a soft note on Tuesday around the 97.50 region.
US Dollar Index retreats from YTD peaks
The index is trading in the negative territory for the first time after four consecutive daily advances, as US-China trade jitters appears somewhat mitigated in the last 24 hours.
In fact, the risk-on sentiment have tepidly resurfaced in the global markets today after China’s Xi Jinping said on Monday he is willing to eliminate the differences in the ongoing US-China trade dispute, all ahead of his meeting with President Trump at the G20 meeting later in the month.
Event-wise today in the US docket, Fedspeak will be in the limelight with speeches by FOMC’s L.Brainard (permanent voter, dovish), Minneapolis Fed N.Kashkari (non voter, dovish), Philly Fed P.Harker (non voter, centrist) and San Francisco Fed M.Daly (voter). Regarding publications, the NFIB Small Business Optimism came in below expectations at 107.4 for the month of October.
US Dollar Index relevant levels
As of writing the index is losing 0.14% at 97.54 facing the next support at 96.74 (10-day SMA) followed by 96.41 (21-day SMA) and finally 95.68 (low Nov.7). On the other hand, a break above 97.69 (2018 high Nov.12) would open the door to 97.87 (61.8% Fibo retracement of the 2017-2018 drop) and then 99.89 (monthly high May 11 2017).
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