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  • The index loses initial upside momentum and trades in the 95.80/75 band.
  • Yields of the US 10-year reference move higher beyond 3.21%.
  • US Non-farm Payrolls for the month of September the salient event today.

The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main competitors, is now easing some ground and is returning to the 95.80/75 band.

US Dollar Index looks to Payrolls

The index clings to its daily gains at the end of the week around the 95.80 region amidst some cautious tone in the global markets in light of the upcoming release of September’s US Non-farm Payrolls.

Consensus among traders expects the US economy to have created around 190K jobs during last month. Focus, as well, will be on the proxy for inflation pressures via wages, tracked by Average Hourly Earnings.

In the broader picture, the index is on the way to close the second consecutive week with gains, including fresh 6-week tops beyond 96.00 the figure (October 3,4) on the back of rising yields of the US 10-year note and hawkish comments from Chief J.Powell.

US Dollar Index relevant levels

As of writing the index is up 0.03% at 95.79 and faces the next hurdle 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). On the other hand, a break below 95.11 (55-day SMA) would aim for 94.88 (21-day SMA) and then 93.81 (low Sep.17).