US Dollar Index drops to monthly lows around 93.50
|- DXY loses the grip and recedes to the 93.50/45 band.
- Risk-on mood, steady US yields weigh on the dollar.
- Flash US Q3 GDP seen expanding 2.0% QoQ.
The US Dollar Index (DXY), which gauges the greenback vs. a bundle of its main competitors, accelerates the downside and challenges October lows near 93.50.
US Dollar Index looks supported near 93.50
The index extends the bearish note in the second half of the week and looks poised to challenge the area of decent contention in the mid-93.00s, where the monthly lows are located.
The dollar receded further following the steady activity in the US cash markets, where the flattening of the yield curve remains well in place. Indeed, yields in the front end surpassed the 0.56% level for the first time since March 2020, while longer-dated yields manage to marginally bounce off recent lows.
In addition, flash US GDP figures showed the economy is seen expanding at 2.0% QoQ in Q3 vs. expectations for a 2.7% expansion. On a brighter note, weekly Claims surpassed estimates at rose by 281K in the week to October 23.
Further weakness in the dollar came on the back of the firmer note in the euro after the ECB event.
US Dollar Index relevant levels
Now, the index is losing 0.40% at 93.48 and a break above 94.17 (weekly high Oct.18) would open the door to 94.56 (2021 high Oct.12) and then 94.74 (monthly high Sep.25 2020). On the flip side, the next down barrier emerges at 93.48 (monthly low October 28) followed by 93.31 (55-day SMA) and finally 92.98 (weekly low Sep.23).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.