Home US Dollar Index moves higher to 96.70 ahead of US PCE
FXStreet News

US Dollar Index moves higher to 96.70 ahead of US PCE

  • The index is testing highs in the 96.70 region on Monday.
  • Yields of the US 10-year note drop to lows near 3.06%.
  • US PCE, Personal Income/Spending next of relevance in the docket.

The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main rivals, is now picking up pace and tests fresh tops in the vicinity of 96.70.

US Dollar Index looks to data, Germany

The index is now gathering extra traction following fresh jitters around EUR stemming from the German political scenario. In fact, renewed political effervescence around Chancellor Merkel’s party are weighing on the European currency early on Monday and thus prompting EUR/USD to fade the initial optimism.

The greenback recovered ground following the earlier dip and is now extending the rally for the third week in a row.

Data wise in the US docket, inflation figures gauged by the PCE are due later in the NA session along with September’s Personal Income/Spending and a speech by Chicago Fed C.Evans (2019 voter, centrist).

US Dollar Index relevant levels

As of writing the index is gaining 0.12% at 96.52 facing the next hurdle at 96.86 (high Oct.26) seconded by 96.98 (2018 high Aug.13) and finally 97.87 (61.8% Fibo of the 2017-2018 drop). On the downside, a breakdown of 96.03 (10-day SMA) would open the door to 95.74 (21-day SMA) and finally 94.79 (low Oct.12).

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.