US Dollar under pressure near 92.60, NFO eyed

In terms of the US Dollar Index (DXY), the greenback remains fragile in the 92.65/60 band ahead of the key release of US non-farm payrolls later in the NA session.

US Dollar all eyes on payrolls

The index is reverting yesterday’s bullish attempt to the vicinity of the 93.00 handle, as markets still remain (very) bearish on the buck.

USD stays under heavy downside pressure in the meantime, as uncertainty stemming from the US political scenario is everything but abated so far.

In addition, yields in the US money markets remain subdued, with the curve flattening somewhat, particularly along the belly. In fact, yields of the 10-year benchmark are trading in the lower end of the recent range around 2.22%, levels last seen in late June.

Ahead in the session, USD will be in centre stage in light of the publication of July’s non-farm payrolls, with consensus looking for a creation of 183k jobs. The focus of attention will also be on inflation pressures via wages, a key component for the Fed’s prospects of further tightening.

US Dollar relevant levels

The index is losing 0.10% at 92.61 finding the next support at 92.41 (2017 low Jul.31) seconded by 91.88 (2016 low May 3) and finally 91.50 (low Jan.15 2015). On the other hand, a break above 93.03 (high Aug.2) would aim for 93.17 (10-day sma) and then 94.11 (high Jul.26).