The dollar index (DXY, average value of the dollar against a basket of major currencies) is lower today by 0.16%, retracing some of yesterday’s 0.74% gain. DXY near-term support is at 105.50 and resistance is near 107.50. The primary dollar declines are vs. the commodity currencies which have risen in step with today’s higher oil prices (+4.17% overnight). The USD is also lower vs. the safe-haven CHF (-0.29%) and JPY (-0.16%).
Dollar performance today: -0.35% vs. NOK, -0.30% vs. SEK, -0.29% vs. CHF, -0.16% vs. JPY, -0.12% vs. CAD, -0.08% vs. AUD, +0.03% vs. EUR & GBP, +0.34% vs. NZD.
UST yields are higher in all tenors with the biggest gains weighted towards the long end (10yr 0.087%).
Today’s rise in oil prices reverses the previous three days of consecutive losses which totaled -4.02%. Oil gains will encounter resistance at $87.00/barrel, and support is anchored at $82.00/barrel.
Gold has continued its recent rally, gaining 1.98% today and is +4.71% since the October 5th close at $1,820.01.
Consumer Sentiment data will be released later this morning, estimate is for a drop to 67.0 vs. the previous 68.1.