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US Dollar Index sidelined around 96.60 ahead of US GDP

  • The index remains rangebound around the 96.60 area.
  • US 10-year yields drop to session lows in sub-3.10 levels.
  • US advanced Q3 GDP figures and U-Mich index next on the docket.

The greenback, tracked by the US Dollar Index (DXY), is looking for direction around the 96.60, coming under some pressure after hitting fresh tops beyond 96.70 on Thursday.

US Dollar Index looks to data

The index keeps the rally well and sound at the end of the week, trading just below yesterday’s 2-month peaks in the 96.70/75 band, posting gains for the second week in a row and consolidating the recent breakout of the critical barrier in the 96.00 neighbourhood.

Italian politics kept fuelling the sour sentiment in the risk-associated space and in turn have been sustaining the up move in the buck in past sessions. That, coupled with prospects of further tightening by the Federal Reserve vs. a ‘steady-for-longer’ stance from the ECB is also supporting the preference of investors for the greenback.

In the US data space, preliminary figures of the GDP for the July-September period will grab all the attention later in the NA session seconded by the final reading of the Consumer Sentiment gauged by the U-Mich index.

US Dollar Index relevant levels

As of writing the index is gaining 0.03% at 96.63 facing the next hurdle at 96.73 (high Oct.25) seconded by 96.98 (2018 high Aug.13) and finally 97.87 (61.8% Fibo of the 2017-2018 drop). On the downside, a breakdown of 95.89 (10-day SMA) would open the door to 95.67 (21-day SMA) and finally 94.79 (low Oct.12).

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