US Dollar Index risks a test of 98.00, data, trade eyed


  • DXY extends the drop to the 98.30 region.
  • Yields of the US 10-year note surpass 1.70%.
  • Optimism from trade talks supports the risk-on mood.

The Greenback, in terms of the US Dollar Index (DXY), keeps losing ground so far this week and is now navigating the 98.30/20 band, or fresh 3-week lows.

US Dollar Index weaker amidst improved risk appetite

The index is down for yet another session and it has accelerated the downside to levels last seen in mid-September in the 98.30/20 region on the back of the strong rebound in the risk-on sentiment.

In fact, positive headlines from the US-China trade talks in Washington have collaborated with the improvement in the risk-associated space and fuelled further the already increasing hopes of a deal (or sort of) in the near term.

Also bolstering the risk-on mood (and hitting further the buck), there appears to be light at the end of the Brexit tunnel after constructive talks between EU’s Barnier and UK’s Barclay earlier in the day hinted at the palpable likeliness of an agreement.

In the data space, the U-Mich index is coming up next, while Export and Import Prices came in mixed.

US Dollar Index relevant levels

At the moment, the pair is losing 0.50% at 98.20 and faces the next support at 97.86 (monthly low Sep.13) ahead of 97.79 (100-day SMA). On the upside, a breakout of 99.25 (high Oct.9) would open the door to 99.67 (yearly high Oct.1) and finally 99.89 (monthly high May 11 2017).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD rebounds after dismal US PMIs

EUR/USD is trading closer to 1.0850, rising in response to weak US PMIs, with the services one pointing to contraction. Earlier, German Manufacturing PMI beat estimates. 

EUR/USD News

GBP/USD advances to 1.2950 after US data

GBP/USD is trading around 1.2950, taking advantage of US weakness stemming from a downfall in Markit's Services PMI in the US. In Britain, the Manufacturing PMI exceeded estimates. 

GBP/USD News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Consolidation process underway

The Crypto board continues to be immersed in an emotional leg-breaking, consistently punishing the emotional state of the traders with its continuous changes of direction.

Read more

XAU/USD unstoppable, breaks to fresh 2020 highs, approaching $1650/oz

XAU/USD is trading in an uptrend above its main daily simple moving averages (SMAs) while breaking above a bull channel. Gold is printing fresh 2020 highs hitting $1646.64 per ounce on an intraday basis.  

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures