US Dollar Index finds initial support near 96.50 ahead of ISM
- The decline in the greenback halted just ahead of 96.50.
- Yields of the US 10-year note met resistance near 3.17% so far.
- US ISM Manufacturing, Claims, next on tap in the docket.
The greenback, in terms of the US Dollar Index (DXY), is correcting lower today following a pick up in the sentiment around the risk-associated complex.
US Dollar Index weaker on Brexit news, looks to data
Wednesday’s positive headlines from the Brexit negotiations triggered a bout of selling orders around the greenback, forcing the index to abandon fresh 218 tops beyond 97.00 the figure and retreat to today’s low in the mid-96.00s.
In the meantime, and on a secondary role for the time being, market participants stay vigilant on the probable announcement of further US tariffs on Chinese products, all ahead of the potential meeting between President Trump and China’s Xi Jinping at the G20 meeting later in the month.
In the US data space, the weekly report on Initial Claims is due ahead of the more relevant ISM Manufacturing for the month of September.
US Dollar Index relevant levels
As of writing the index is losing 0.50% at 96.63 and a breakdown of 96.45 (10-day SMA) would open the door to 95.93 (21-day SMA) and finally 94.79 (low Oct.12). On the flip side, the next up barrier lines up at 97.19 (2018 high Oct.31) seconded by 97.87 (61.8% Fibo of the 2017-2018 drop) and then 101.34 (high Apr.10 2017).