US Dollar Index on the defensive near 96.70 ahead of data

• The index bounces off lows near 96.60, remains weak so far.
• Yields of the US 10-year note rebound from lows in the 3.04%.
• US Durable Goods Orders, U-Mich, Claims next on tap in the calendar.

The US Dollar Index (DXY), which gauges the buck vs. a basket of its main competitors, is giving away part of the recent gains and trades in the 96.70/60 band.

US Dollar Index looks to risks, data

Following yesterday’s strong rebound, the index is now trading on a soft note although remains close to weekly highs in the 96.80/85 band.

However, the sentiment in the risk-associated universe remains fragile in light of the omnipresent uncertainty around Brexit and the persistent effervescence in Italian politics.

It will be an interesting day in the US calendar ahead of tomorrow’s Thanksgiving Day holiday. In fact, October’s Durable Goods Orders, the usual report on the labour market, the final November U-Mich index and Existing Home Sales are all due later in the NA session.

US Dollar Index relevant levels

As of writing the index is losing 0.07% at 96.75 and a breakdown of 96.04 (low Nov.20) would aim for 95.68 (low Nov.7) and finally 95.71 (55-day SMA). On the upside, the immediate hurdle emerges at 96.84 (10-day SMA) seconded by 97.69 (2018 high Nov.12) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop).