- The index drops to session lows in sub-95.00 levels.
- Yields of the key US 10-year note ease from tops near 2.89%.
- US Non-farm Payrolls will be in centre stage later in the session.
The US Dollar Index (DXY), which tracks the greenback vs. its main competitors, has resumed the downside today and breaks below the key support at the 95.00 handle.
US Dollar Index now looks to data
The index faded the recent optimism and is now trading on a weak note, dropping to fresh daily lows in the 94.90 region ahead of key data in the US calendar.
The persistent downside in the buck has been on the back of a decline in yields of the US 10-year reference from tops beyond 2.91%, all amidst some pick up in the risk-on sentiment as of late and somewhat calmer mood in the EM FX space.
Data wise, the greenback should be in the limelight later in the day, as US Non-farm Payrolls for the month of August are due along with speeches from FOMC’s Rosengren, Kaplan and Mester.
US Dollar Index relevant levels
As of writing the index is losing 0.13% at 94.90 facing the next support at 94.45 (low Aug.28) seconded by 94.20 (38.2% Fibo of the 2017-2018 drop) and then 94.08 (low Jul.26). On the upside, a breakout of 96.04 (50% Fibo of the 2017-2018 drop) would open the door for 96.96 (2018 high Aug.15) and finally 97.87 (61.8% Fibo of the 2017-2018 drop).
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