- The DXY index leaves Friday’s decline behind and is targeting the 96.00 level.
- US yields start the week on a mild positive sentiment.
- Construction spending and the final manufacturing PMI stand out on today’s economic calendar.
The US dollar DXY index, which measures the strength of the dollar against a basket of major currencies, regains upward traction and is approaching the 96.00 level at the start of the European session on Monday.
DXY Index focuses on data and returns
The DXY index manages to bounce back from Friday’s 4-week lows in the 95.60 / 55 region amid a timid recovery in US yields, shifting attention to the key level of 96.00 on Monday.
In fact, the dollar reverses the decline on Friday during the first day of the new year aided by the gentle stance around risk appetite at the start of the European session.
Later on the American economic calendar, Markit to publish its final reading for the manufacturing PMI for the month of December along with construction spending figures for November.
Relevant levels of the US dollar DXY index
At the time of writing, the DXY index is gaining 0.24% on the day, trading at 95.89. A break above 96.39 (December 29 high) would open the door to 96.90 (December 15 high) and 96.03 (November 24 high). On the other hand, the next support appears at 95.57 (December 31 low), followed by 95.51 (November 30 low) and 94.96 (November 15 low).
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