- 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.
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).
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