- The index loses some ground following (over) optimistic news on Brexit.
- US ADP report surpassed estimates at 227K jobs in October.
- US Chicago PMI came in below consensus at 58.4 for the current month.
After hitting fresh 2018 peaks around 97.20 earlier in the session, the greenback is now receding some ground when tracked by the US Dollar Index (DXY).
US Dollar upside capped around 97.20
The index is now struggling to keep the positive territory following a bout of selling pressure stemming from latest news on Brexit, where UK’s Raab said (badly hopes that) a deal could be reached by November 21st.
(Over) optimistic news around Brexit gave extra oxygen to the risk-associated space in detriment of the buck, motivating the current knee-jerk.
In the data space, solid prints from the ADP report in October (227K) gave some extra sustain to the ongoing rally in the buck ahead of the more relevant Payrolls due on Friday.
US Dollar Index relevant levels
As of writing the index is up 0.01% at 97.00 facing the next hurdle at 97.19 (2018 high Oct.31) seconded by 97.87 (61.8% Fibo of the 2017-2018 drop) and then 101.34 (high Apr.10 2017). On the downside, a breakdown of 96.36 (10-day SMA) would open the door to 95.89 (21-day SMA) and finally 94.79 (low Oct.12).
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