US Dollar clinches fresh YTD highs beyond 96.00

  • The index moves higher to record fresh tops in the 96.00 region.
  • Yields of the US 10-year note tumble to lows near the 2.90% handle.
  • US CPI for the month of July next of relevance in the docket.

The greenback, in terms of the US Dollar Index (DXY), is extending the upside momentum to levels above the critical 96.00 mark, recording at the same time fresh yearly peaks.

US Dollar bid ahead of data

The index clinched tops in the 96.10 region following a wave of selling pressure against the buck’s competitors, with EUR/USD and GBP/USD dropping to fresh YTD lows.

A news run by the Financial Times highlighting the ECB’s concerns over the exposure of some EU banks (Unicredit, BNP Paribas, BBVA) to Turkey’s assets amidst the sharp sell off in the Turkish Lira appears to have triggered the selling wave in the risk-associated universe.

Looking ahead, US inflation figures measured by the CPI for the month of July is due later in the NA session, while US-China trade dispute and Turkey should also be in centre stage ahead in the day.

US Dollar relevant levels

As of writing the index is gaining 0.46% at 96.03 and a breakout of 96.18 (high Aug.10) would aim for 96.51 (high Jul.5 2017) and then 97.87 (61.8% Fibo of the 2017-2018 drop). On the downside, the next support is located at 95.10 (10-day SMA) seconded by 94.90 (10-day SMA) and finally 94.08 (low Jul.26).

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