US Dollar extends the rally above 93.00

  • The index extends the move beyond the 93.00 handle today.
  • US 10-year yields returns to levels above the 3.0% level.
  • US Producer Prices, EIA report on oil inventories next in the docket.

The greenback, tracked by the US Dollar Index (DXY), is prolonging the upside after recently breaking the key barrier at 93.00 the figure.

US Dollar firm on sentiment, yields

The index advances for the fourth consecutive session today, extending the recent breakout of the 93.00 handle and clinching at the same time fresh YTD peaks.

The up move in the buck has been accompanied by an uptick of yields in the key US 10-year note above the critical 3.0% level, while DXY remained apathetic after President Trump announced the US withdrawal from the Iran nuclear deal on Tuesday.

Looking ahead, US Producer Prices for the month of April are due later along with the speech by Atlanta Fed R.Bostic (voter, centrist) and the usual weekly report on US crude oil supplies by the EIA.

US Dollar relevant levels

As of writing the index is gaining 0.18% at 93.25 and a breakout of 93.42 (2018 high May 9) would open the door to 93.68 (78.6% Fibo of 95.15-88.25) and then 94.22 (high Dec.12 2017). On the other hand, initial contention emerges at 92.52 (61.8% Fibo of 95.15-88.25) seconded by 92.39 (10-day sma) and finally 91.96 (200-day sma).

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