- The index is accelerating the downside to fresh lows near 96.20.
- US JOLTs Job Openings and IBD/TIPP index next on the docket.
- Focus remains on results from US mid-term elections.
The greenback remains on the defensive so far this week and is now prompting the US Dollar Index (DXY) to recede to fresh daily lows in the vicinity of 96.20.
US Dollar Index looks to elections
The index is down for the second session in a row on Tuesday, reverting some initial optimism and returning to the negative territory around the 96.20 zone.
Once again, some positive speculations around Brexit and the likeliness that a UK-EU deal could be in the offing has been lending support to the Sterling and the broader risk-associated complex, all in detriment of the buck.
Later in the session, September’s JOLTs Job Openings are due along with the IBD/TIPP index and the API report on US crude oil stockpiles.
Regarding the US mid-term elections, consensus is tilted towards a divided Congress, with Democrats controlling the House of Representatives and Republicans keeping control of the Senate.
US Dollar Index relevant levels
As of writing the index is losing 0.12% at 96.23 facing immediate contention at 96.02 (21-day SMA) seconded by 95.99 (low Nov.2) and finally 95.37 (55-day SMA). On the upside, a break above 97.19 (2018 high Oct.31) would aim for 97.87 (61.8% Fibo of the 2017-2018 drop) and then 101.34 (high Apr.10 2017).
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