- The greenback keeps the bid tone above the 95.00 milestone.
- US 10-year yields drop to the 2.97% area, where found some support.
- US Non-farm Payrolls expected at 193K for the month of July.
The greenback, in terms of the US Dollar Index (DXY), remains on a firm note at the end of the week and is now looking to extend the breakout of the 95.00 mark.
US Dollar looks to Payrolls
The index has retreated to the current vicinity of 95.20 region after advancing to session peaks in the 95.35/40 in earlier in the session.
The upside momentum in the greenback remains underpinned by persistent effervescence in the US-China trade front coupled with the Chinese currency depreciating to record lows vs. the greenback and taking USD/CNY beyond 6.89.
Later in the session, the buck is expected to remain in centre stage in light of the release of the monthly figures from the US labour market, where Non-farm Payrolls are seen at 193K in July and the jobless rate is expected to tick lower to 3.9%. In addition, the key ISM Non-manufacturing is also due.
US Dollar relevant levels
As of writing the index is up 0.07% at 95.24 and a breakout of 95.38 (high May 29) would target 95.53 (high Jun.28) en route to 95.65 (2018 high Jul.19). On the downside, the next support lines up at 94.69 (10-day sma) seconded by 94.45 (55-day sma) and finally 94.23 (low Jul.31).
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