- The index trades with red figures around the 96.60 region.
- Low volatility is expected today as US markets will be closed.
- Brexit, Italy set to dictate the sentiment today.
The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main rivals, is trading on a weak note in the 96.60 area amidst thin trade conditions due to the Thanksgiving Day holiday.
US Dollar Index looks to events in Europe
The index is down for the second session in a row today, easing further ground after recent tops in the boundaries of 96.90 (Tuesday).
The price action around the greenback has been determined by the mood in the risk-associated space in past weeks, which is in turn closely following developments around Brexit and Italian politics.
In fact, UK’s PM Theresa May is expected to discuss her version of the Brexit deal with EU officials in Brussels, while Italian effervescence around the 2019 budget remains unabated so far.
While US markets are closed today, the ECB minutes will be the salient event in Euroland seconded by the flash print of November’s Consumer Confidence by the European Commission.
US Dollar Index relevant levels
As of writing the index is losing 0.13% at 96.59 and a breakdown of 96.04 (low Nov.20) would aim for 95.68 (low Nov.7) and finally 95.45 (100-day SMA). On the upside, the immediate hurdle emerges at 96.88 (10-day SMA) seconded by 97.69 (2018 high Nov.12) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop).
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