US Dollar Index under pressure around 95.00

  • The index remains offered around the 95.00 handle.
  • US 10-year yields rebound from lows near 3.12%.
  • Advanced US Consumer Sentiment gauge next of relevance.

The greenback, in terms of the US Dollar Index (DXY), remains on the defensive so far this week and is now looking to bounce off the 95.00 neighbourhood.

US Dollar Index looks to yields, stocks

The index has accelerated the leg lower and navigates the area of multi-day lows around the 95.00 handle following a sharp retreat in US yields and the continuation of the sell off in the US stocks markets, which so far printed the largest drop under the Trump Administration.

In fact, yields of the US 10-year note dropped to the 3.12% late on Thursday, where appear to have met some decent support.

In the meantime, the demand for the buck continues to suffer another bout of criticism to the Fed’s policy by President Trump.

Looking ahead, the flash reading of the US Consumer Sentiment for the current month and Export/Import Prices are due next on the docket.

US Dollar Index relevant levels

As of writing the index is up 0.02% at 95.05 and a breakout of 95.18 (55-day SMA) would open the door to 95.50 (10-day SMA) 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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