US Dollar extends the drop below 94.00
- DXY stays offered below the 94.00 handle.
- US 10-year yields tumbled to 2.34%.
- Attention remains on US CPI, retail sales.
The greenback, in terms of the US Dollar Index (DXY), remains on the defensive during the first half of the week and is now testing fresh lows in the 93.60 region.
US Dollar focused on US data
Rising uncertainty and skepticism around the US tax reform sponsored by the White House continue to weigh on the buck, forcing the US Dollar Index to move further south of the 94.00 handle and prolong the recent breakdown of the key support line off 2017 lows in the 91.00 neighbourhood seen in September.
The down move in the greenback has been accompanied by a drop in yields of the key US 10-year benchmark, shedding around 7 bps since weekly tops beyond the 2.41% area recorded on Tuesday.
Ahead in the session, the greenback will stay in centre stage in light of the release of October’s inflation figures gauged by the CPI seconded by retail sales and the NY Empire State manufacturing index.
US Dollar relevant levels
As of writing the index is losing 0.23% at 93.60 and a breakdown of 93.48 (low Oct.26) would aim for 93.33 (55-day sma) and finally 93.06 (low Oct.19). On the upside, the immediate resistance aligns at 94.29 (21-day sma) seconded by 94.50 (10-day sma) and then 95.15 (high Nov.7).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
