US Dollar rangebound near 93.60

The greenback, when tracked by the US Dollar Index, is alternating gains with losses on Monday in the 93.60/65 band so far.

US Dollar near 7-week tops

The index navigates within a sideline pattern at the beginning of the week, looking to consolidate the rejection from Friday’s tops near 94.30 following US payrolls.

It is worth mentioning that payrolls decreased by 33K jobs during September, exclusively due to extreme weather conditions, although average hourly earnings – a proxy for wage inflation – expanded at a healthy 0.5% MoM.

In the meantime, the ongoing rally in DXY stays underpinned by the up move in yields of the US money markets, where yields of the 10-year benchmark clinched tops around 2.40% on Friday, just to recede a tad afterwards.

Nothing expected in the US data space today, whereas the FOMC minutes on Wednesday promises to attract all the attention.

On the positioning front, the speculative community trimmed the net shorts to the lowest level in the last three weeks in the week to October 3, according to the latest CFTC report.

US Dollar relevant levels

As of writing the index is losing 0.01% at 93.61 facing the initial support at 92.95 (200-day sma) seconded by 92.81 (10-day sma) and then 91.01 (2017 low Sep.4). On the upside, a breakout of 94.27 (high Oct.6) seconded by 94.35 (21-day sma) and finally 95.90 (38.2% Fibo of the 2017 drop).