- DXY stays bid near the 99.00 handle, 2019 highs.
- Yields of the US 10-year note tumble below 2.0%.
- US ISM manufacturing coming up next.
The greenback, when measured by the US Dollar Index (DXY), is promonging the sideline theme in the area of recent 2019 highs just below the 99.00 yardstick.
US Dollar Index looks to ISM, NFP
The index is prolonging the rally for the third consecutive week so far, this time exacerbated by the recent FOMC event, where the Fed reduced rates by 25 bps in line with markets’ expectations, although it practically ruled out further rate cuts this year.
The up move in the buck comes in spite of the decline in yields of the key US 10-year benchmark, which broke below the critical 2.05 support for the first time since early July.
Later in the day, all eyes will be on the release of the key ISM Manufacturing for the month of July ahead of tomorrow’s monthly labour market report. Earlier in the session Markit’s final manufacturing PMI improved a tad to 50.4 during last month.
US Dollar Index relevant levels
At the moment, the pair is gaining 0.24% at 98.80 and faces the next resistance at 98.93 (2019 high Aug.1) seconded by 99.89 (monthly high May 2017) and finally 100.00 (psychological level). On the flip side, a break below 98.37 (high May 23) would open the door to 97.87 (61.8% Fibo of the 2017-2018 drop) and then 97.27 (55-day SMA).
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