- The index keeps the negative tone and drops to 96.40/30.
- Yields of the US 10-year note come down to test 3.15%.
- US ISM Manufacturing disappointed estimates at 57.7 in October.
Tracked by the US Dollar Index (DXY), the greenback remains entrenched into the negative ground and navigating multi-day lows around 96.40.
US Dollar Index offered on ISM
The selling pressure around the greenback is now picking up extra pace after the US ISM Manufacturing came in at 57.7 for the month of October, missing forecasts.
The upbeat tone in the risk-associated space remains well and sound in the second half of the week, always sustained by rising optimism on Brexit negotiations and the likeliness of a UK-EU deal at some point later in the month.
In addition, yields of the US 10-year reference are also retreating and are flirting with daily lows near the 3.15% area.
Moving forward, the buck is seen under pressure against the current rebound in the riskier assets and ahead of key Non-farm Payrolls for the month of October to be published tomorrow.
US Dollar Index relevant levels
As of writing the index is losing 0.78% at 96.35 and a breakdown of 95.93 (21-day SMA) would aim for 95.33 (55-day SMA) and finally 94.79 (low Oct.12). On the flip side, the next up barrier lines up at 97.19 (2018 high Oct.31) seconded by 97.87 (61.8% Fibo of the 2017-2018 drop) and then 101.34 (high Apr.10 2017).
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