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  • The index is now losing the grips and slip back to the mid-95.00s.
  • Yields of the US 10-year note eased from tops and breach 3.23%.
  • US Producer Prices came in mixed in September, up 0.2% MoM.

The US Dollar Index (DXY), which tracks the buck vs. its main competitors, is now shedding further ground and tests daily lows near the 95.50 area.

US Dollar Index offered post-data

Quite a choppy session for the greenback so far on Wednesday, now dropping to fresh lows near 95.50 after the earlier visit to session peaks in the 95.80 region.

Rising hopes of a Brexit deal are lifting the mood and the demand in the risk-associated universe in detriment of the buck, which has now turned negative for the day.

In addition, yields of the key US 10-year note are retreating from earlier tops near 3.25% and are now challenging the 3.22% region.

In the US data space, headline Producer Prices rose 0.2% MoM in September and rose 2.6% on an annualized basis. Core prices gained 0.2% inter-month and rose 2.5% YoY.

Moving forwards, Chicago Fed C.Evans (2019 voter, centrist) will speak later in the session seconded by the weekly report on US crude oil supplies by the American Petroleum Institute (API).

US Dollar Index relevant levels

As of writing the index is losing 0.13% at 95.56 and a break below 95.52 (low Oct.5) would aim for 95.51 (10-day SMA) and then 95.17 (55-day SMA). On the upside, the next hurdle aligns at 96.12 (high Oct.4) seconded by 96.98 (2018 high Aug.13) and finally 97.87 (61.8% Fibo retracement of the 2017-2018 drop).