US Dollar tumbles further to 94.40, session lows

• The index drops further and tests lows in the 94.45/40 band.
• Yields of the US 10-year note trade a tad lower from 2.97%, daily peaks.
• Markit’s advanced manufacturing gauge came in at 55.5 for July.

Tracked by the US Dollar Index (DXY), the greenback is now losing extra ground and is probing daily lows in the vicinity the 94.40 region.

US Dollar upside capped near 94.90

The index is reverting part of yesterday’s advance, dropping to daily lows after the up move to the 94.90 area lacked of follow through earlier in the session.

The downbeat sentiment around the buck is opposed to the better performance of yields in the US 10-year note, which managed to clinch new multi-week tops above the 2.97% milestone.

In the US data space, flash Manufacturing PMI measured by Markit for the month of July is seen at 55.5, while the Services gauge is expected a tad lower than forecasts. Still in the manufacturing sector, the Richmond Fed Index came in at 20 vs. 18 initially estimated.

Looking ahead, the greenback is expected to remain in centre stage amidst the ongoing US-China trade dispute and the recent war of words between Trump and Iran’s Rohuani.

US Dollar relevant levels

As of writing the index is losing 0.15% at 94.49 and a breakdown of 94.27 (55-day sma) would open the door to 94.21 (low Jul.223) and finally 93.71 (low Jul.9). On the upside, the next up barrier aligns at 94.81 (high Jul.24) seconded by 95.53 (high Jun.28) and then 95.65 (2018 high Jul.19).