- The DXY remains in positive territory just below 93.00
- US 10-year yields rebound to 1.30% and above.
- Markit’s manufacturing and services PMIs were mixed.
The dollar extends bullish momentum, although a breakout of the 93.00 hurdle remains elusive when measured by the US dollar index (DXY).
US dollar index on track to close second week with gains
The index capitalized on the rebound from Thursday lows near 92.50 and appears to rebound to the 93.00 level so far at the end of the week.
US yields rose, with the 10-year yield finally leaving the 1.30% criterion behind, extending the rebound from recent lows in the region below 1.13% earlier in the week.
According to the US economic agenda, the Markit Manufacturing PMI beat estimates by 63.1 (from 62.1) in July, while the Services indicator disappointed the consensus with 59.8 (from 64.6).
All in all, the index is marching firmly to close the second consecutive week with gains, always supported by the resurgence of risk appetite and the rebound in US yields in the second half of the week, while the reinforced moderation in the position of the ECB in its meeting on Thursday also collaborates with the momentum of the dollar.
Technical levels
Now the index is gaining 0.14% to 92.96 and a breakout of 93.43 (March 21, 2021 high) would open the door to 94.00 (round level) and finally 94.30 (November 4 monthly high). On the other hand, the next bearish barrier is lined up at 92.46 (23.6% Fibonacci from November to January rally) followed by 92.00 (monthly low on July 6) and then 91.51 (weekly low on June 23).

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