US Dollar Index recedes to 97.20 post-CPI

• The index loses momentum in the wake of CPI figures.
• Yields of the key US 10-year reference bounce to 3.15% and above.
• US Core CPI rose 2.1% YoY in October, less than expected.

Tracked by the US Dollar Index (DXY), the greenback is now giving away some gains and retreats to the 97.20 region.

US Dollar Index offered post-data

The initial optimism around the buck lost momentum after US inflation figures measured by the CPI showed consumer prices rose at an annualized 2.5% and 0.3% on a monthly basis in October.

However, Core prices rose 2.1% over the last twelve months, a tad below prior surveys, and 0.2% inter-month, in line with initial forecasts.

Inflation results disappointed expectations and triggered a correction lower in the buck, although the index so far manages to keep the trade in the positive territory amidst ongoing speculations around Brexit and Italy.

Later in the session, the EIA will publish its weekly report on US crude oil supplies.

US Dollar Index relevant levels

As of writing the index is gaining 0.04% at 97.20 and a break above 97.69 (2018 high Nov.12) would open the door to 97.87 (61.8% Fibo retracement of the 2017-2018 drop) and then 99.89 (monthly high May 11 2017). On the downside, immediate contention emerges at 96.95 (low Nov.13) followed by 96.69 (10-day SMA) and finally 96.49 (21-day SMA).