US Dollar Index challenges 93.00 after US PMIs

  • DXY sticks to the positive territory just below 93.00
  • US 10-year yields retake the 1.30% mark and beyond.
  • Markit’s flash Manufacturing, Services PMIs came in mixed.

The greenback extends the upside momentum, although a breakout of the 93.00 hurdle still remains elusive when gauged by the US Dollar Index (DXY).

US Dollar Index on its way to close the second week with gains

The index keeps the rebound from Thursday’s lows near 92.50 well and sound and looks to regain the 93.00 neighbourhood so far at the end of the week.

Higher US yields now see the 10-year note finally leaving behind the 1.30% yardstick, extending the bounce off recent lows in the sub-1.13% region recorded earlier in the week.

The US docket saw Markit’s Manufacturing PMI surpassing estimates at 63.1 (from 62.1) in July, while the Services gauge missed consensus at 59.8 (from 64.6).

All in all, the index marchs firmly to close the second consecutive week with gains, always on the back of the re-emergence of the risk-off mood and the rebound in US yields in the second half of the week, while the enhanced dovish stance from the ECB at its meeting on Thursday also collaborates with the dollar's momentum.

US Dollar Index relevant levels

Now, the index is gaining 0.14% at 92.96 and a breakout of 93.43 (2021 high Mar.21) would open the door to 94.00 (round level) and finally 94.30 (monthly high Nov.4). On the other hand, the next down barrier lines up at 92.46 (23.6% Fibo of the November-January rally) followed by 92.00 (monthly low Jul.6) and then 91.51 (weekly low Jun.23).

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