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  • The index remains within the negative territory near 93.70.
  • US 10-year yields plummets to fresh lows in sub-2.97% level.
  • US Existing Home Sales

The US Dollar Index  (DXY), which gauges the greenback vs. its main competitors, remains on the defensive and is now meandering in the 93.70/65 band.

US Dollar looks to yields, Trump

The index is posting losses for the first time following two consecutive daily advances, including fresh 6-month tops in the vicinity of 94.20 recorded on Wednesday.

The drop in DXY comes in tandem with declining yields of the key US 10-year note, which are navigating fresh lows in the boundaries of the 2.96% level. The drop in yields intensified after President Trump cancelled his meeting with Kim Jong-un next month.

In the US data space, Initial Claims rose more than expected 234K WoW, taking the 4-Week Average to 219.75K from 213.50K. In addition, Existing Home Sales contracted at a monthly 2.5% in April (or to 5.46 million units), more than initially estimated.

Next of relevance in the US calendar will be tomorrow’s speech by Chief J.Powell seconded by April’s Durable Goods Orders.

US Dollar relevant levels

As of writing the index is losing 0.37% at 93.65 and a breakdown of 93.37 (10-day sma) would target 93.30 (low May 21) en route to 92.87 (21-day sma). On the other hand, the immediate hurdle aligns at 94.19 (2018 high May 23) followed by 94.22 (monthly high Dec.11 2017) and then 94.27 (high Oct.5 2017).