US Dollar stays in red near 94.70

• Softer yields in US 10-year drag DXY lower.
• Trump’s decision on Fed Chief expected on Thursday.
• USD vulnerable as the Russia-gate is back to the fore

The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rival currencies, keeps the negative note at the beginning of the week around the 94.75/70 band.

US Dollar focused on yields, Trump

The greenback stays in the negative territory on Monday, reverting at the same time two consecutive sessions with gains and always influenced by the performance of yields in the key US 10-year reference, which are currently testing fresh lows in sub-2.38% levels.

In addition, USD is suffering a renewed bout of fresh headlines regarding the so-called Russia-gate, this time involving Paul Manafort (Trump’s campaign chairman) and George Papadopoulos (early foreign policy adviser to Trump’s presidential campaign).

In the data space, the greenback has quickly left behind in line results from September’s inflation figures gauged by the PCE and higher-than-expected personal spending during the same period.

Looking ahead, the index is expected to trade in a cautious mode in light of the upcoming FOMC meeting and Friday’s non-farm payrolls.

US Dollar relevant levels

As of writing the index is losing 0.16% at 94.67 and a break below 94.27 (high Oct.6) would expose 94.03 (23.6% Fibo of the 2017 drop) and finally 93.48 (low Oct.26). On the other hand, the initial hurdle aligns at 95.15 (high Oct.27) followed by 95.90 (38.2% Fibo of the 2017 drop) and then 96.84 (200-day sma).