US Dollar flirting with 5-day highs near 90.30

  • The index moved higher to multi-day tops near 90.30.
  • US 10-year yields strongly rebound to the boundaries of 2.86%.
  • US flash Consumer Sentiment improved to the highest level since 2004.

The US Dollar Index (DXY), which gauges the buck vs. a basket of its main rival currencies, is now clinching fresh multi-day highs in the proximity of the 90.30 region.

US Dollar propped up by data

The index is now on its way to close the second consecutive week with gains, looking to consolidate the breakout of the psychological milestone at 90.00 the figure.

The buck reverted the initial negative stance following a string of better-than-expected results in today’s US docket. In fact, Industrial Production, Capacity Utilization and JOLTs Job Openings all surprised to the upside, while advanced Consumer Sentiment came in at 102.0 for the current month, the highest level since 2004.

The uptick in USD has been accompanied by a rebound in yields of the key US 10-year note to the 2.86% area, some 5-6 bps higher than recent weekly lows.

However, the persistent turbulence in the US political scenario, fears of a global trade war and the imminent FOMC meeting are likely to put the ongoing rally in the buck to the test in the coming days.

US Dollar relevant levels

As of writing the index is gaining 0.21% at 90.32 facing the next up barrier at 90.57 (high Feb.8) seconded by 90.93 (high Mar.1) and finally 91.00 (high Jan.18). On the flip side, a breakdown of 89.88 (23.6% Fibo of 95.15-88.25) would open the door to 89.56 (low Mar.14) and then 89.41 (low Mar.7).

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