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  • The index drops and rebounds from lows in the 96.70 region.
  • Yields of the US 10-year note met resistance near 3.05%.
  • US ISM Manufacturing, Fedspeak next of relevance.

The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main competitors, has started the week on the defensive dropping to the 96.70 area, where some support have emerged.

US Dollar Index looks to data, Fedspeak

The index opened Monday’s trading session with a gap lower against the backdrop of a strong improvement in the risk-associated universe in the wake of the G20 gathering.

The greenback stays under pressure in response to alleviating trade concerns between US and China after President Trump and Xi Jinping agreed a 90-day truce over the weekend. By this truce, the US should not increase tariffs or impose fresh ones, while negotiations towards a permanent deal will be under way.

In the US data space, the ISM Manufacturing will be the most relevant event today along with speeches by FOMC’s permanent voters R.Clarida, R.Quarles and L.Brainard and NY Fed J.Williams (also permanent voter, centrist).

US Dollar Index relevant levels

As of writing the index is losing 0.33% at 96.87 and a break below 96.62 (low Nov.29) would open the door to 96.32 (low Nov.22) and finally 96.04 (low Nov.20). On the flip side, the next hurdle emerges at 97.53 (high Nov.28) seconded by 97.69 (2018 high Nov.12) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop).