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  • The index leaves recent lows and moves above the 94.00 handle.
  • Yields of the US 10-year note navigate around 3.08%.
  • US advanced Manufacturing and Services PMIs next on tap in the docket.

After bottoming out in fresh 2-month lows near 93.80, the US Dollar Index (DXY) has found some dip-buyers and is now trading back above the critical 94.00 milestone.

US Dollar Index bounces off 2-month lows

The sentiment around the greenback has been deteriorating since mid-August, coming down following the rejection from YTD peaks in the vicinity of the 97.00 handle (August 15).

Today’s recovery comes in after some negative headlines from the Brexit negotiations weighed on investors’ sentiment and thus dented the upbeat mood surrounding the riskier assets.

In the US data space, Markit’s preliminary Manufacturing and Services PMIs for the month of September are only due later in the NA session.

US Dollar Index relevant levels

As of writing the index is gaining 0.16% at 94.05 and a break above 94.59 (100-day SMA) would aim for 95.00 (high Sep.14) and finally 95.04 (55-day SMA). On the other hand, immediate contention aligns at 93.82 (low Sep.21) followed by 93.71 (monthly low Jul.9) and then 93.19 (monthly low Jun.14).