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  • The index stays bid above the 95.00 handle on Friday.
  • Yields of the US 10-year note rebounds to the 3.05% region.
  • US final Consumer Sentiment came in at 100.1, below estimates.

The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main rivals, is now extending the upbeat tone to the 95.20/30 band.

US Dollar Index in 2-week tops

The index manages to reclaim the critical 95.00 handle and above following quite a sharp sell of in the risk-associated assets, particularly the single currency and the British Pound.

In fact, rising jitters on the Italian fiscal scenario triggered a strong selling sentiment among traders, pushing up Italian yields and forcing EUR/USD and stocks to intensify the downside.

The upside momentum in the buck also appears propped up by the hawkish stance from the FOMC’s statement and subsequent press conference by Chief J.Powell, while solid prints from Q2 GDP also lent extra oxygen to the up move.

Today, mixed results saw Personal Spending and Personal Income expanding at a monthly 0.3% in August, while inflation figures gauged by the Core PCE rose at an annualized 2.0% during the same period and came in flat on a monthly basis.

In addition, the final print from the U-Mich index came in at 100.1, a tad below consensus for the current month.

US Dollar Index relevant levels

As of writing the index is gaining 0.20% at 95.18 facing the next hurdle at 95.37 (high Sep.28) seconded by 95.74 (monthly high Sep.4) and finally 96.04 (50% Fibo of the 2017-2018 drop). On the downside, a breach of 93.81 (low Sep.21) would aim for 93.71 (monthly low Jul.9) and then 93.19 (monthly low Jun.14).