- The index stays on the defensive albeit still above the 95.00 mark.
- Yields of the US 10-year note navigate session lows in the 2.93% region.
- USD drops as Bresit headlines boost the demand for riskier assets.
The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main rivals, remains on the defensive near session lows in the 95.00 neighbourhood.
US Dollar offered post-Brexit news
The index quickly faded the earlier spike to tops in the 95.50/60 band as the sentiment around the risk-associated universe managed to revert the recent pessimism.
In addition, auspicious comments from EU’s Chief Negotiator M.Barnier noted that a Brexit deal is ‘realistic’ in 6-8 weeks (?), fuelling the demand for the Sterling and the rest of its peers. In the same direction, market participants paid little attention to another bout of concerns around the US-China trade dispute after the White House announced the likeliness of further tariffs.
Nothing expected today in the US docket other than the speech by Atlanta Fed R.Bostic (centrist, voter).
US Dollar Index relevant levels
As of writing the index is losing 0.35% at 95.08 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 break above 95.74 (high Sep.4) would open the door to 96.04 (50% Fibo of the 2017-2018 drop) and finally 96.96 (2018 high Aug.15).
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