US Dollar Index fades the spike to tops above 96.00

The index returns to sub-96.00 levels after testing 96.15/20 band.
Yields of the US 10-year note tumble to lows near 3.15%.
Speeches by R.Bostic and N.Kashkari next on tap in the docket.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which gauges the greenback vs. its main rivals, has faded another test of the 96.15/20 band and is now navigating the sub-96.00 area.

US Dollar looks to risk trends

The pick up in the risk-off sentiment is giving extra support to the safe haven Japanese Yen and is dragging USD/JPY lower, undermining the initial USD-strength.

The knee-jerk from tops beyond 96.00 the figure comes along a retracement in yields of the key US 10-year note to fresh lows in the 3.15% neighbourhood.

In the meantime, investors keep looking to Italy and Brexit for near term direction in the global markets as well as the usual month-end flows.

Nothing scheduled on the US docket today, although Atlanta Fed R.Bostic (voter, centrist) and Minneapolis Fed N.Kashkari (non voter, dovish) are due to speak later in the NA session.

US Dollar Index relevant levels

As of writing the index is losing 0.16% at 95.88 and a breakdown of 95.49 (10-day SMA) would open the door to 95.36 (21-day SMA) and finally 94.79 (low Oct.12). On the flip side, the next hurdle is located at 96.15 (high Oct.23) seconded by 96.16 (high Oct.9) and then 96.98 (2018 high Aug.13).

Author

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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