Home US Dollar Index risks a test of 98.00, data, trade eyed
Forex News Today: Daily Trading News

US Dollar Index risks a test of 98.00, data, trade eyed

  • DXY extends the drop to the 98.30 region.
  • Yields of the US 10-year note surpass 1.70%.
  • Optimism from trade talks supports the risk-on mood.

The Greenback, in terms of the US Dollar Index (DXY), keeps losing ground so far this week and is now navigating the 98.30/20 band, or fresh 3-week lows.

US Dollar Index weaker amidst improved risk appetite

The index is down for yet another session and it has accelerated the downside to levels last seen in mid-September in the 98.30/20 region on the back of the strong rebound in the risk-on sentiment.

In fact, positive headlines from the US-China trade talks in Washington have collaborated with the improvement in the risk-associated space and fuelled further the already increasing hopes of a deal (or sort of) in the near term.

Also bolstering the risk-on mood (and hitting further the buck), there appears to be light at the end of the Brexit tunnel after constructive talks between EU’s Barnier and UK’s Barclay earlier in the day hinted at the palpable likeliness of an agreement.

In the data space, the U-Mich index is coming up next, while Export and Import Prices came in mixed.

US Dollar Index relevant levels

At the moment, the pair is losing 0.50% at 98.20 and faces the next support at 97.86 (monthly low Sep.13) ahead of 97.79 (100-day SMA). On the upside, a breakout of 99.25 (high Oct.9) would open the door to 99.67 (yearly high Oct.1) and finally 99.89 (monthly high May 11 2017).

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.