US Dollar still unable to break above 96.00

The US Dollar Index (DXY) – which tracks the buck vs. its main competitors – keeps the upbeat tone so far today although it still remains below the 96.00 handle.

US Dollar upside capped near 96.00

The index keeps the recovery intact from last week’s lows in the mid-95.00s, advancing for the second session in a row, while it remains underpinned by the now better tone in US yields.

In fact, yields of the 10-year reference has regained the 2.38$% area after bottoming out near 2.36% earlier in the session.

In the US docket today, the Fed’s Labor Market Conditions Index came in at 1.5 vs. 2.5 expected and down from 3.3 (revised from 2.3).

Some extra support for the buck comes from the speculative community, where longs have climbed to 3-week tops in the week to July 3, as shown by the latest CFTC report.

US Dollar relevant levels

The index is gaining 0.11% at 95.89 facing the next up barrier at 96.25 (high Jul.5) ahead of 96.32 (high Jun.28) and then 96.51 (20-day sma). On the other hand, a breach of 95.53 (low Jul.7) would open the door to 95.22 (2017 low Jun.30) and then 94.95 (low Sep.22 2016).