DXY extends rebound above 97 mark; Set for weekly loss of around 1%

The dollar index extended rebound above 97 mark on Friday following a streak of decline for most part of the week amid improving sentiments on the back of US trade deals. Meanwhile, greenback gained traction following mixed US data. Data revealed that the number of Americans filing for unemployment benefits dipped below forecasts, suggesting a strong labour market. However, the S&P Global Manufacturing PMI fell into contraction territory, dropping to 49.5 from Junes 37-month high of 52 and missing expectations of 52.5 signaling weakness. The Services PMI rose to 55.2, beating the 53.0 forecasts and improving from 52.9 in June, indicating robust growth in the services sector. Meanwhile, US Treasury yields rose with the 10-year Treasury note climbing three basis points up to 4.416% and the US Dollar Index (DXY), which tracks the greenbacks performance against a basket of six currencies, is up 0.21% at 97.32 but is set for a weekly decline of nearly 1%. Among basket currencies, EURUSD and GBPUSD are both trading lower by around 0.2% at $1.1779 and $.3499 respectively.

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