- The index loses further ground and drops to 96.80.
- US holiday keeps draining markets off volatility.
- Fed’s Beige Book due later, ISM non-manufacturing expected on Thursday.
The greenback has come under selling pressure once again, coming down after climbing to fresh daily highs around 97.20 during early trade when gauged by the US Dollar Index (DXY).
US Dollar Index erases weekly gains
Renewed jitters on the US-China trade front have given the buck some extra oxygen earlier in the day, lifting the index to fresh weekly peaks at 97.20.
However, the sentiment around the risk-associated complex improved somewhat since then, provoking USD-sellers to return to the markets and drag the greenback lower.
While volatility and trade conditions are expected to remain thin in light of the holiday in the US markets, investors should keep their attention on Italian and Brexit developments for any clues on direction.
In the US docket, the only release of note will be the Fed’s Beige Book, as the key ISM Non-manufacturing was postponed for tomorrow along with the employment report from ADP and the weekly report on US crude oil supplies by the EIA.
US Dollar Index relevant levels
As of writing the index is down 0.02% at 96.89 facing immediate contention at 96.32 (low Nov.22) followed by 96.04 (low Nov.20) and finally 95.68 (low Nov.7). On the upside, a break above 97.53 (high Nov.28) would open the door to 97.69 (2018 high Nov.12) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop).
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