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  • DXY is trading on a positive note near weekly highs.
  • Yields of the US 10-year note
  • Non-farm Payrolls will be the salient event later today.

The greenback, in terms of the US Dollar Index (DXY), keeps the consolidative tone well and sound at the end of the week around the 96.70/80 band.

US Dollar Index focused on key data

Following Monday’s sharp advance to the area below 97.00 the figure post-trade truce between the US and China, the index managed to keep that area amidst declining yields and poor results from the US docket.

In fact, yields of the key US 10-year note have declined to fresh lows in the vicinity of 1.94%, levels last traded over two years ago.

In the meantime, US markets are gradually returning to normalcy following yesterday’s inactivity due to the Independence Day holiday. Further rangebound is thus expected amidst swelling cautiousness ahead of the publication of June’s Payrolls.

Later in the NA session, the US economy is expected to have created 160K jobs during last month, while the jobless rate is seen steady at 3.6% and Average Hourly Earnings – a proxy for wage inflation – expanding 3.2% from a year earlier.

What to look for around USD

The greenback appears to have lost some upside momentum following Monday’s strong bounce. Scepticism around the resumption of US-China talks remains on the raise among investors and is somehow undermining a serious bullish attempt in the buck. This scenario is also reinforced by rising speculations of a rate cut by the Fed in the near term, all against the backdrop of the renewed accommodative stance from the Committee.

US Dollar Index relevant levels

At the moment, the pair is gaining 0.06% at 96.78 and faces the next up barrier at 96.88 (monthly high Jul.2) seconded by 97.08 (100-day SMA) and finally 97.77 (high Jun.18). On the downside, a breakdown of 96.64 (200-day SMA) would aim for 95.82 (low Feb.28) and then 95.74 (low Mar.20).