US Dollar DXY Index Falls Again Approaching 93.60

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  • The DXY index retraces Thursday’s advance and returns to 93.60.
  • US yields returned part of the recent rise on Friday.
  • Preliminary PMIs stand out on today’s US economic calendar.

The US dollar DXY index, which measures the strength of the dollar against a basket of major currencies, is again pointing lower, approaching the 93.65 / 60 region at the end of the week.

DXY Index focuses on data and returns

The DXY index quickly retraces Thursday’s rally and again targets lower at the end of the week, at the same time retesting the 93.60 region on Friday.

The resumption of the selling tone around the dollar comes in response to the decline in US yields from recent highs, the short end of the curve retreating to 0.45%, while longer maturities fall to 1.68% and 2.12%, respectively.

Meanwhile, inflation concerns return to the fore after the 5-year rate rise sharply to the limits of the key 3.0% level, while the 10-year rate approaches the 2.65% level.

inflation

Regarding US data, Markit will release its preliminary PMIs for the month of October, in what will be the only economic releases on Friday.

Relevant levels of the US dollar DXY index

At the time of writing, the DXY index is shedding 0.13% on the day, trading at 93.64. A break above 94.17 (October 18 high), would open the door to 94.56 (October 12 high) and then 94.74 (September 2020 high). On the other hand, the next support is at 93.49 (October 21 low), followed by 93.25 (55-day SMA) and finally 92.98 (September 23 low).

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