- The index loses further momentum and retreats to the 97.30 area.
- US 10-year yields remain apathetic around the 3.16% zone.
- Brexit optimism over a potential deal keeps lifting the sentiment.
The better tone in the risk-associated universe is forcing the greenback to recede further and test session lows around 97.30 when measured by the US Dollar Index (DXY).
US Dollar Index looks to Fedspeak
The index is giving away some of yesterday’s gains in response to an improved mood in the riskier assets, all on the back of renewed optimism on a potential Brexit deal between the UK and the EU.
In addition, the effervescence on the US-China trade front appears somewhat alleviated today after auspicious comments from China’s Xi Jinping ahead of his meeting with President Trump at the G20 gathering later in November.
In the data space, the NFIB index dropped to 107.4 for the month of October, coming in below estimates. Later in the week, the US should gain in importance in light of the releases of the CPI, Retail Sales and the speech by Chief Powell.
Later today, FOMC’s L.Brainard (permanent voter, dovish), Minneapolis Fed N.Kashkari (non voter, dovish), Philly Fed P.Harker (non voter, centrist) and San Francisco Fed M.Daly (voter) are all due to speak.
US Dollar Index relevant levels
As of writing the index is losing 0.42% at 97.27 facing the next support at 96.74 (10-day SMA) followed by 96.41 (21-day SMA) and finally 95.68 (low Nov.7). On the other hand, 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).
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