- The index managed to rebound to the 96.30 region.
- Yields of the US 10-yer note sidelined below 2.87%.
- US-China trade front, Turkey main drivers today.
The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rivals, bounced off lows in early trade although the bullish move run out of legs in the vicinity of 96.30.
US Dollar Index looks to trade, Turkey
After two consecutive sessions with losses, the index has now started the week on the positive footing despite gains found a tough barrier in the proximity of 96.30 for the time being.
In the meantime, the greenback keeps looking to the broader risk trends for direction, with eyes particularly set on headlines coming from Turkey and the Lira.
In addition, trade talks between the US and China could likely resume later this month in light of the key visit of the Chinese Vice Commerce Minister to the US. Extra gains in the buck, therefore, could appear limited at least in the near term and as long as optimism over a positive outcome of this meeting remains alive.
From the speculative community, USD net longs climbed to the highest level since May 16 2017 during the week ended on August 14, as per the latest CFTC report.
Nothing scheduled data wise in the US docket today, with only Atlanta Fed R.Bostic (voter, centrist) due to speak.
US Dollar relevant levels
As of writing the index is gaining 0.17% at 96.29 and a break above 96.98 (2018 high Aug.15) would open the door to 97.00 (psychological level) and then 97.87 (61.8% Fibo of the 2017-2018 drop). On the downside, initial contention emerges at 96.10 (10-day SMA) seconded by 95.39 (21-day SMA) and finally 94.08 (low Jul.26).
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