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  • The index keeps the bid tone near the 97.00 handle.
  • Yields of the US 10-year reference flirt with lows near 3.01%.
  • Chicago PMI came in at 66.4 for the month of November.

The greenback is on the way to close the second week with gains while at the same time is trying to retake the critical barrier at 97.00 the figure when gauged by the US Dollar Index (DXY).

US Dollar Index looks to trade, US politics

The index managed to regain the buying bias on Friday following two consecutive daily retracements, as investors remain cautious ahead of the key meeting between Trump and Xi Jinping at the G20 summit with the trade dispute on top of the agenda.

The greenback manages to recover the shine after dovish comments from Chief J.Powell earlier in the week triggered quite a moderate sell off to the 96.60 region, shedding around a cent since weekly tops in the mid-97.00s.

Event-wise today, NY Fed J.Williams (permanent voter, centrist) said earlier that he sees neutral rate low for the foreseeable future, warning at the same time that inflation expectations could lose traction over time if the Fed sticks with 2% inflation goal.

In the docket, the Chicago PMI surprised to the upside at 66.4 for the current month.

US Dollar Index relevant levels

As of writing the index is gaining 0.41% at 97.16 facing the next hurdle at 97.53 (high Nov.28) seconded by 97.69 (2018 high Nov.12) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop). On the other hand, a break below 96.62 (low Nov.29) would open the door to 96.32 (low Nov.22) and finally 96.04 (low Nov.20).