- The index recovers the topside and reverts Tuesday’s sell off.
- Yields of the US 10-year note drop to lows around 3.13%.
- US October CPI next of relevance in the calendar.
The greenback is reverting yesterday’s pullback and has returned to the 97.40 region, or session tops, when tracked by the US Dollar Index (DXY).
US Dollar Index now focused on CPI
Following Tuesday’s pullback, the index has now regained some buying interest and returns to the 97.40 region after briefly testing sub-97.00 levels during yesterday’s session.
Renewed concerns over the Brexit negotiations have been weighing on the sentiment surrounding the risk-on complex in past hours, motivating USD-buyers to return to the markets. In addition, Italian politics remains in centre stage, keeping the European currency under pressure and undermining any bullish attempt.
In the US data space, inflation figures measured by the CPI for the month of October are coming up next seconded by the weekly report on US crude oil supplies by the EIA.
US Dollar Index relevant levels
As of writing the index is gaining 0.23% at 97.38 and a break above 97.69 (2018 high Nov.12) would open the door to 97.87 (61.8% Fibo retracement of the 2017-2018 drop) and then 99.89 (monthly high May 11 2017). On the downside, immediate contention emerges at 96.95 (low Nov.13) followed by 96.69 (10-day SMA) and finally 96.49 (21-day SMA).
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