US Dollar gains further traction, 90.00 on sight

  • The index is extending the bounce off daily lows and is now around 89.90.
  • Risk-off sentiment is picking up pace and supporting the buck.
  • US Retail Sales missed expectations, Producer Prices up 0.2% MoM.

The US Dollar Index – which gauges the greenback vs. its main competitors – is gathering extra upside traction and is now trading at shouting distance from the psychological barrier at 90.00 the figure.

US Dollar up on tariffs, rumors

The index is now picking up further pace and continues to extend the rebound from session lows following concerns over potential implementations of tariffs on China for up to 460 billion in products.

In addition, US Senator R.Paul said he opposes the nomination of former CIA Director M.Pompeo to Secretary of State and G.Haspel to CIA Director, sparking further effervescence.

Furthermore, the buck is stronger amidst a pick up in the VIX index, which is now trading near 16.50, while yields in the US 10-year reference are sinking to session lows in the 2.80% neighbourhood.

In the data space, USD shrugged off disappointing figures from February’s Retail Sales (-0.1% MoM), while Producer Prices rose 0.2% inter-month during the same period.

US Dollar relevant levels

As of writing the index is gaining 0.15% at 89.82 and a break above 90.57 (high Feb.8) would open the door to 90.93 (high Mar.1) and finally 91.00 (high Jan.18). On the other hand, the next support aligns at 89.43 (low Mar.7) seconded by 88.44 (low Jan.26) and then 88.25 (2018 low Feb.16).

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