US Dollar depressed below 94.00 ahead of data

• The index extends the sell off below the 94.00 handle.
• US 10-year yields hovering over tops around 2.88%.
• US PCE, Personal Income/Spending next of relevance in the docket.

The greenback, in terms of the US Dollar Index (DXY), is intensifying the recent downside below the 94.00 handle ahead of key data releases in the US calendar.

US Dollar looks to data

The index has gathered extra downside pressure today, extending the rejection from recent multi-month tops just above 95.00 the figure.

In fact, DXY prolongs the weekly leg lower amidst renewed optimism around the risk-associated space and with Italy still in the centre of the debate. The subsequent upbeat tone in EUR/USD keep putting the buck under further downside pressure.

In addition, yields of the key US 10-year reference manage to keep the trade in the upper end of the recent range in the 2.98% neighbourhood.

Looking ahead, the weekly report on the US labour market is due later along with Personal Income/Spending, Pending Home Sales and key inflation figures tracked by the PCE. In addition, FOMC’s L.Brainard and R.Bostic are due to speak.

US Dollar relevant levels

As of writing the index is losing 0.33% at 93.73 and a breakdown 93.64 (23.6% Fibo of the April-June up move) would target 93.41 (21-day sma) en route to 93.21 (low May 21). On the upside, the next up barrier aligns at 93.98 (10-day sma) seconded by 95.01 (2018 high May 29) and finally 95.15 (monthly highs Oct/Nov. 2017).