US Dollar Index sinks to daily lows near 94.50

• The index loses further momentum and drops to 94.50/45 band.
• Yields of the key US 10-year note off earlier highs at 3.02%.
• US NY Empire State manufacturing index surprised to the downside.

The greenback, tracked by the US Dollar Index (DXY), remains well on the defensive at the beginning of the week and is now testing daily lows in the mid-94.00s.

US Dollar weaker on sentiment, data

The greenback faded Friday’s spike as market participants shifted their interest to the risk-associated universe today.

In addition, alleviated concerns in the EM FX space have been also collaborating with the better tone in the riskier assets, all in detriment of the buck.

In the same line, investors appear to almost ignore the fresh wave of threats of US tariffs on Chinese products, likely to be announced at some point later in the week.

Today’s calendar did not help the greenback either, as the NY Empire State manufacturing index came in below expectations at 19.00 for the current month.

US Dollar Index relevant levels

As of writing the index is losing 0.54% at 94.47 facing the next support at 94.36 (low Sep.14) seconded by 94.20 (38.2% Fibo of the 2017-2018 drop) and then 94.08 (low Jul.26). On the flip side, a break above 95.00 (high Sep.14) would target 95.06 (21-day SMA) en route to 95.74 (high Sep.4).