US Dollar clinches 2018 tops near 93.50

  • The index navigates YTD tops near 93.50 as demand strengthens.
  • US 10-year yields clinch fresh multi-year tops near 3.06%.
  • US Retail Sales expanded 0.3% MoM, less than expected.

Measured by the US Dollar Index (DXY), the greenback resumed the recent upside and is now posting fresh yearly highs near 93.50.

US Dollar boosted by US yields

The index is extending the optimism during the first half of the week, not only retaking the key 93.00 milestone but also moving to YTD tops in the 93.45/50 band.

The buck’s upside gained further momentum following the sharp rebound in yields of the key US 10-year note, which recorded fresh multi-year tops around the 3.06% neighbourhood.

The greenback has practically ignored the disappointing results from US Retail Sales, which expanded less than expected 0.3% inter-month in April. On the positive side, the NY Empire State manufacturing gauge came in above initial estimates at 20.10 for the current month.

Later in the NA session, Business Inventories are due for the month of March along with the NAHB index and TIC Flows.

US Dollar relevant levels

As of writing the index is up 0.82% at 93.44 facing the next resistance at 94.22 (high Dec.11 2017) seconded by 94.27 (high Oct.5 2017) and then 95.15 (high Nov.6 2017). On the flip side, a breakdown of 92.76 (10-day sma) would open the door to 92.25 (low May 13) and finally 91.95 (200-day sma).

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