US Dollar Index clings to gains near 96.80

The index is up smalls in the 96.80 region.
Yields of the US 10-year note navigate lows around 3.02%.
FOMC’s Williams is due to speak, Chicago PMI next on tap.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which gauges the greenback vs. its main rivals, is trading within a sideline theme around the 96.80 region.

US Dollar Index looks to trade, G20

After two consecutive daily pullbacks, the index is now attempting a small rebound to the 96.80 area amidst lower US yields and a cautious approach ahead of the Trump-Xi meeting at the G20 gathering.

Nothing new from the FOMC minutes on Thursday, where the Committee reinforced the now data-dependent stance from the Federal Reserve. The minutes also left intact the likeliness of a fourth rate hike at the December meeting, while market consensus started to debate the possibility of 1-3 rate hikes next year.

In the data space, NY Fed J.Williams (permanent voter, centrist) is due to speak while the Chicago PMI is only scheduled in the US calendar.

US Dollar Index relevant levels

As of writing the index is gaining 0.07% at 96.84 facing the next hurdle at 97.53 (high Nov.28) seconded by 97.69 (2018 high Nov.12) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop). On the other hand, a break below 96.62 (low Nov.29) would open the door to 96.32 (low Nov.22) and finally 96.04 (low Nov.20).

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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