- DXY stays cautious above 93.00 ahead of key events.
- US 10-year yields rebound past the 1.34% area.
- Building Permits, Housing Starts, API report next on tap.
The greenback, when tracked by the US Dollar Index (DXY), faces some selling pressure after hitting fresh tops near 93.50 on Monday.
US Dollar Index looks vigilant ahead of FOMC
The index adds to Monday’s small losses and returns to the 93.20 area on the back of the broad-based cautious note in the global markets and despite the move higher in US 10-year yields to levels above 1.34%.
The dollar loses some ground and stays offered in the first half of the week amidst some loss of upside momentum despite climbing to new monthly highs around 93.50 on Monday.
The closely followed US 2y-10y yield gap gave away around 6 pts on Monday amidst falling yields in a context dominated by the risk aversion mood, all reflecting rising jitters around China’s Evergrande crisis.