The US dollar index maintains the offered bias around 93.60

• DXY falls further below 94.00 while maintaining daily gains.
• Trump and Biden remain side by side focusing on swing states.
• The US ADP report widely disappointed the consensus with 365,000 last month.

The US Dollar Index (DXY), which measures the dollar against a group of its main rivals, maintains the offered tone unchanged, although well below the 94.00 barrier, as the vote count continues.

The US Dollar Index cuts past gains and retreats below 94.00

The index halted its initial move to monthly highs so far in the 94.30 region, all against the background of increasing volatility and alternating headlines about the progress of the vote count.

So far, Democratic candidate Joe Biden is leading the way, though President Trump is closely following. Meanwhile, investors have shifted their focus to upcoming results from key states like Michigan, Pennsylvania and Wisconsin.

In the US data space, the ADP report showed that the private sector added 365,000 jobs over the past month, disappointing previous estimates of 650,000 and more than half of the 753,000 gain in October. Other data showed that the trade deficit narrowed to $ 63.9 billion during September.

What to look for around USD

The index surpasses the 94.00 level amid growing caution among investors as the US election turned unexpectedly (very) close. The continuation of the dollar’s upward momentum depends on the very short-term election results, as well as risk aversion derived from the impact of the pandemic on the world economy. Later in the week, the dollar is expected to remain under the microscope in light of the release of key data and the FOMC meeting, this time scheduled for Thursday.

Relevant levels

At the moment, the index is gaining 0.30% to 93.61 and a breakout of 94.30 (November 3 monthly high) would open the door to 94.74 (September 25 monthly high) and finally to 96.03 (50% Fibonacci drop of 2017-2018). On the downside, immediate containment emerges at 93.09 (November 3 monthly low), followed by 92.47 (October 21 monthly low) and then 91.92 (23.6% Fibonacci from the 2017-2018 dip).