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US Dollar extends the downside below 94.00

  • DXY stays under pressure below the 94.00 handle.
  • US 10-year yields rebounds to the 2.37% area.
  • US data next on tap ahead of FOMC minutes.

The US Dollar Index (DXY), which tracks the buck vs. its main rival currencies, keeps the choppy trade so far this week and is now hovering over the 93.85/80 band.

US Dollar focused on FOMC, data

The index is now prolonging the weekly correction lower, down for the second session in a row following the rejection from weekly peaks in the 94.10/15 band recorded yesterday.

DXY stays on the defensive despite yields of the key US 10-year benchmark managed to rebound from daily lows and challenge weekly peaks beyond the 2.37% level.

Further selling pressure hit the buck after Chief J.Yellen said on Wednesday that inflation expectations have drifted lower in recent months, adding that raising rates too quickly risk forcing inflation to remain below the Fed’s target.

In the US data space, October’s durable goods orders are due next seconded by the weekly report on initial claims, the final print of the November’s consumer sentiment and the FOMC minutes.

US Dollar relevant levels

As of writing the index is retreating 0.13% at 93.85 and a breakdown of 93.58 (100-day sma) would aim for 93.46 (55-day sma) and finally 93.40 (low Nov.15). On the other hand, the initial hurdle lines up at 94.05 (10-day sma) seconded by 94.16 (low Nov.11) and then 94.37 (21-day sma).

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