US Dollar Index reverted the drop, tests highs near 95.30

  • The index recovers ground and bounces off the 95.00 area.
  • Yields of the US 10-year reference ease of highs, back near 3.15%.
  • US flash Consumer Sentiment came in at 104.7 in October.

The US Dollar Index (DXY), which measures the greenback vs. a basket of its main competitors, is trading on a better tone in the 95.20/25 band on Friday.

US Dollar supported around 95.00

After three consecutive daily declines, including today’s multi-day lows in sub-95.00 levels, the index managed to grab some buying interest and is now advancing to the 95.25/30 band, or session highs.

The recovery in the buck comes along some choppy performance in yields of the US 10-year reference, which are now sidelined around the 3.16% area after bottoming out near 3.12% on Thursday.

The greenback has gathered extra pace after Chicago Fed C.Evans (2019 voter, centrist) favoured the Fed’s ‘slightly restrictive’ policy, adding that this may mean 50 bps above neutral.

In the data space, the preliminary U-Mich reading is expected to come in at 99.0 for the current month, a tad below expectations at 100.4.

US Dollar Index relevant levels

As of writing the index is up 0.28% at 95.31 and a breakout of 95.52 (10-day SMA) would open the door to 96.04 (50% Fibo of the 2017-2018 drop) and finally 96.16 (high Oct.9). On the flip side, immediate support emerges at 94.96 (low Oct.12) seconded by 94.87 (100-day SMA) and then 94.20 (38.2% Fibo of the 2017-2018 drop).

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