US Dollar Index approaches 97.00 ahead of NFP

  • The index is looking to advance further and retest the 97.00 area.
  • Yields of the US 10-year note rebound to the 2.88% zone.
  • US Non-farm Payrolls next of relevance in the docket.

The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rivals, is trading on a better tone and is getting closer to 97.00 the figure.

US Dollar Index looks to risk trends, data

The index is extending the choppy trade so far this week, although a breakout of the critical 97.00 mark still remains elusive, all amidst alternating trends in the global risk appetite.

Bullish attempts in the buck appear somewhat capped following recent dovish comments from FOMC officials, while rumours and counter-rumours on the US-China trade dispute/truce keep adding volatility to the market.

Later in the session, the usual monthly report on US labour market is due, with market consensus expecting the US economy to have created 200K jobs during November and wages to have risen 0.3% inter-month.

US Dollar Index relevant levels

As of writing the index is up 0.11% at 96.87 and a break above 97.00 (10-day SMA) would expose 97.53 (high Nov.28) and then 97.69 (2018 high Nov.12). On the flip side, immediate contention emerges at 96.38 (low Dec.4) followed by 96.04 (low Nov.20) and finally 95.68 (low Nov.7).

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