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  • The index stays on the defensive below the 94.00 handle.
  • Yields of the 10-year note extend the consolidation around 3.07%
  • DXY lost ground on hawkish comments by ECB’s Draghi.

The greenback, in terms of the US Dollar Index (DXY), remains in the negative territory at the beginning of the week although it manages to bounce off lows near the 93.80 level.

US Dollar Index reverts initial gains

After a positive start of the day, the index quickly faded that initial optimism following a pick up in the sentiment around the risk-associated complex as well as EUR-supportive comments from President Draghi before the European Parliament.

In fact, the buck has plunged to lows and EUR/USD has quickly climbed to daily highs after Draghi said the labour market in the region remains tight and wage pressures keep growing. In addition, Draghi now expects a relatively vigorous pick up in underlying inflation.

In the US data space, the Chicago Fed National Activity Index surpassed expectations at 0.18 for the month of August.

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).