US Dollar Index tumbles to lows near 95.00

• The index drops further and approaches 95.00.
• Yields of the US 10-year note sidelined around 3.15%.
• US Empire State index, Retail Sales next on tap.

The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rivals, has started the week on the defensive and is now coming in closer to the critical support at 95.00 the figure.

US Dollar Index looks to data, risk

The index continues to fade Friday’s advance against the backdrop of a deteriorating sentiment in the stock markets, which is lending extra support to the Japanese safe haven and is forcing USD/JPY lower.

In the meantime, yields of the key US 10-year reference keep the narrow sideline theme around the 3.15% ahead of key releases in the US calendar later today.

Moving forward, the greenback should be in centre stage in light of the publication of the NY Empire State index and September’s Retail Sales. In addition, the US Treasury is expected to release its bi-annual report on FX manipulation, although it is unlikely that mentions China as a ‘currency manipulator’.

US Dollar Index relevant levels

As of writing the index is losing 0.22% at 95.05 and faces immediate support at 94.98 (21-day SMA) seconded by 94.95 (low Oct.12) and then 94.20 (38.2% Fibo of the 2017-2018 drop). On the upside, a breakout of 96.16 (high Oct.9) would open the door to 96.98 (2018 high Aug.13) and finally 97.87 (61.8% Fibo retracement of the 2017-2018 drop).