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  • The index fades the initial spike to the 94.40 region and drops to 94.10.
  • Yields of the US 10-year note rebound to 3.08%.
  • Markets remain focused on trade jitters, risk trends.

The US Dollar Index (DXY), which tracks the buck vs. its main competitors, is now trading on the defensive around the 94.15/10 band.

US Dollar Index looks to trade, data, risk

The index is now giving away part of Friday’s gains as the initial risk-off mood did not find enough follow through into the European session.

The greenback opened the week on a positive note after China decided to cancel the trade talks with the US, which are likely to resume after the US midterm elections in November.

However, the risk-associated complex managed to recover some ground and pushed the index lower along with yields in the US 10-year reference rising to the area above 3.08%.

Data wise today, the Chicago Fed National Activity Index is only due, although the speech by President M.Draghi at the European Parliament should also be noteworthy.

US Dollar Index relevant levels

As of writing the index is losing 0.11% at 94.10 finding immediate contention at 93.81 (low Sep.21) followed by 93.71 (monthly low Jul.9) and then 93.19 (monthly low Jun.14). On the flip side, a break above 94.54 (10-day SMA) would aim for 95.00 (high Sep.14) and finally 95.04 (55-day SMA).