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  • The index abandons the area of daily highs and retreats to 94.65/60.
  • Yields of the US 10-year note flirt with highs around 2.98%.
  • US first revision of Q2 GDP coming up next in the NA session.

The greenback, in terms of the US Dollar Index (DXY), is now giving away part of the earlier advance and returns to the 94.60/65 band, close to session lows.

US Dollar looks to US GDP

The index is now losing upside traction despite yesterday’s bullish ‘outside day’ and tops around 94.80 following the dovish tone from the ECB at its meeting and the subsequent strong drop in EUR/USD.

The buck managed to revert Wednesday’s important sell off after the positive results from the Trump-Juncker meeting somewhat eased tensions on the trade front.

The current knee-jerk in DXY has been in tandem with a recovery in yields of the key US 10-year reference to the 2.97%-2.98% zone.

Looking ahead, the first estimate of the US GDP for the second quarter will be closely followed by market participants followed by the final gauge of the U-Mich index for the month of July.

US Dollar relevant levels

As of writing the index is down 0.06% at 94.71 and faces the next support at 94.08 (low Jul.26) followed by 93.71 (low Jul.9) and finally 93.19 (low Jun.14). On the upside, a breakout of 94.79 (high Jul.26) would target 94.85 (high Jul.24) en route to 95.03 (high May 29).