US Dollar extends the drop to 94.50 ahead of data

The index drops to multi-day lows near 94.50.
US 10-year yields test fresh highs in the 2.92% area.
US flash Manufacturing/Services PMI next on tap.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main rivals, is extending the drop and posts fresh multi-day lows in the mid-94.00s.

US Dollar looks to data, trade

The index is down for the second session in a row at the end of the week, coming down from yesterday’s fresh 11-month tops just beyond 95.50.

The selling momentum in the buck picked up pace in tandem with shrinking concerns on the US-China trade front following escalating tensions at the beginning of the week.

In the meantime, yields of the key US 10-year note are inching higher today, navigating in session tops around the 2.92% area.

Later in the NA session, Markit will publish its flash figures for the Manufacturing/Services PMI for the current month.

US Dollar relevant levels

As of writing the index is down 0.33% at 94.56 and a breach of 94.47 (low Jun.22) would open the door to 94.24 (21-day sma) and then 93.19 (low Jun.13). On the upside, the next hurdle emerges at 95.53 (2018 high Jun.22) seconded by 96.00 (psychological level) and finally 96.51 (high Jul.4 2017).

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.

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