US Dollar Index tumbles further near 95.80

The index loses further momentum and drops to the 95.90/85 band.
US 10-year yields come up after dropping to 2.95% earlier in the day.
Market attention remains on the US mid-term elections results.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which tracks the greenback vs. its main competitors, remains under heavy pressure this week and is now testing lows in the 95.90/85 band.

US Dollar Index drops to multi-day lows

The greenback stays fragile so far this week, losing ground for the third consecutive session and navigating fresh multi-day lows in the vicinity of 95.90.

The greenback came under renewed and strong selling pressure following the results from the US mid-term elections. In fact, and matching initial forecasts, the elections now show a divided Congress, where Republicans keep control of the Senate and Democrats regained the House of Representatives.

In addition, yields of the key US 10-year reference are now sidelined around 3.19% after bottoming out in the 2.95% region soon after the elections results.

In the US data space, the weekly report on US crude oil supplies by the DoE will be the only release of note.

US Dollar Index relevant levels

As of writing the index is losing 0.46% at 95.79 facing the next support at 95.47 (low Oct.20) seconded by 95.38 (55-day SMA) and finally 95.22 (100-day SMA). On the other hand, a breakout of 96.49 (10-day SMA) would open the door to 96.68 (high Nov.5) and then 97.19 (2018 high Oct.31).

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.