• The index extends the bearishness to the 105.60 region.
• The better tone in the risk complex put the dollar under pressure.
• Final Manufacturing PMI, ISM Manufacturing PMI next on tap.

The greenback, in terms of the US Dollar Index (DXY), remains on the defensive and revisits recent lows in the 105.60 region on Monday.

US DOLLAR INDEX OFFERED ON RISK-ON TRADE, LOOKS TO DATA

The index loses ground for the fourth consecutive session so far on Monday against the backdrop of further improvement in the risk complex and a tepid bounce in US yields in the belly and the long end of the curve.

Indeed, the downbeat mood prevails around the greenback and keeps DXY under further pressure after investors continue to assess last week’s poor GDP prints (-0.9%), which showed the US economy entered a technical recession in Q2.

Later in the NA session, the final S&P Global Manufacturing PMI is due ahead of the key ISM Manufacturing PMI, both gauges for the month of July. Finally, June’s Construction PMI will also be in the calendar.