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  • The index losing the grip and tests the 96.00 handle.
  • Yields of the US 10-year note keep tops near 3.20%.
  • Challenger Job Cuts, Initial Claims, Factory Orders coming up next.

Tracked by the US Dollar Index (DXY), the greenback is now losing some upside momentum and is challenging the key support at 96.00 the figure.

US Dollar Index up on Powell, looks to data

After testing fresh tops in the 96.10 area during early trade, the index is now giving away part of that advance and is putting the key support at 96.00 the figure to the test.

The demand for the greenback has picked up pace late on Wednesday in response to the hawkish comments from Chief J.Powell at his interview on CBS, where he stressed that ‘we’re far from neutral’ when comes to the Fed’s interest rates.

Powell’s comments lifted yields of the key US 10-year benchmark to levels beyond 3.20%, area last visited in June/July 2011, and pushed the buck above the 96.00 handle, or fresh 6-week peaks.

In the meantime, political concerns surrounding Italy stay poised to keep the risk-associated complex under pressure and therefore continue to lend support to the upside bias in the greenback.

Data wise later today, Initial Claims are due seconded by Challenger Job Cuts, Factory Orders and the speech by FOMC’s R.Quarles.

US Dollar Index relevant levels

As of writing the index is losing 0.08% at 95.96 and a breach of 95.10 (55-day SMA) would aim for 94.87 (21-day SMA) and then 93.81 (low Sep.17). On the upside, the next hurdle emerges 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).