US Dollar Index drops to daily lows around 96.40

• The index tumbles further and clinches lows in sub-96.40 region.
• Yields of the US 10-year note drop below 3.19%, session lows.
• US ISM Non-manufacturing came in above expectations at 60.3.

The greenback, in terms of the US Dollar Index (DXY) has now picked up renewed selling pressure and is navigating session lows in the 96.40/35 band.

US Dollar Index weaker despite data

The index is dropping further into the negative territory at the beginning of the week amidst some recovery in the risk-associated complex, although navigating a narrow range so far.

In fact, positive comments from ECB’s Smets reactivated the demand for the European currency and is lifting EUR/USD to daily highs above 1.1400 the figure. Smets advocated for inflation to pick up pace, showing optimism on further economic growth in Euroland and adding that the ECB could probably end the asset purchases by year end.

On the US data space, the US ISM Non-manufacturing came in at 60.3 for the month of October, surpassing initial estimates and adding to Friday’s batch of positive results in the US calendar.

US Dollar Index relevant levels

As of writing the index is losing 0.14% at 96.36 and a break below 96.00 (21-day SMA) would aim for 95.35 (55-day SMA) and finally 94.79 (low Oct.12). On the other hand, the next barrier emerges 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).