• The index manages to gather some upside traction.
• Bets for a rate hike in the latter part of the year dwindle.
• All the attention will be on the US jobs report.

The USD Index (DXY), which tracks the greenback vs. a bundle of its main competitors, looks bid around the 106.50 at the end of the week.

USD Index focuses on data

The index manages to regain some balance and leave behind two consecutive sessions of losses on Friday, regaining the 106.50 region and shifting its focus to another test of the 107.00 neighbourhood.

The recent knee-jerk in the index came pari passu with the equally marked correction in US yields across different maturities, as speculation of further tightening by the Federal Reserve before year-end appears to have been losing momentum as of late.

In the meantime, investors are expected to closely follow the release of the US labour market report, where the economy is expected to have created 170K jobs in September and the Unemployment Rate is projected to have receded to 3.7%.

Other than the US jobs report, the docket includes Consumer Credit Change figures and the speech by FOMC Governor C. Waller (permanent voter, hawk).