US Dollar extends the drop to 94.50 ahead of data

The index drops to multi-day lows near 94.50.
US 10-year yields test fresh highs in the 2.92% area.
US flash Manufacturing/Services PMI next on tap.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main rivals, is extending the drop and posts fresh multi-day lows in the mid-94.00s.

US Dollar looks to data, trade

The index is down for the second session in a row at the end of the week, coming down from yesterday’s fresh 11-month tops just beyond 95.50.

The selling momentum in the buck picked up pace in tandem with shrinking concerns on the US-China trade front following escalating tensions at the beginning of the week.

In the meantime, yields of the key US 10-year note are inching higher today, navigating in session tops around the 2.92% area.

Later in the NA session, Markit will publish its flash figures for the Manufacturing/Services PMI for the current month.

US Dollar relevant levels

As of writing the index is down 0.33% at 94.56 and a breach of 94.47 (low Jun.22) would open the door to 94.24 (21-day sma) and then 93.19 (low Jun.13). On the upside, the next hurdle emerges at 95.53 (2018 high Jun.22) seconded by 96.00 (psychological level) and finally 96.51 (high Jul.4 2017).

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Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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