US Dollar Index struggles for direction around 92.80

DXY sheds some ground near the 93.00 mark.
US 10-year note yields consolidate around 1.33%.
The preliminary Consumer Sentiment gauge comes next in the docket.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which measured the greenback vs. a basket of its main rivals, alternates gains with losses in the area close to the 93.00 barrier on Friday.

US Dollar Index still looks to data

Following Thursday’s sharp advance to new multi-week tops in the boundaries of the 93.00 barrier, the index now meets some mild selling pressure and gives away part of those gains.

The recent move to new monthly peaks near 93.00 the figure came in response to higher yields in the US 10-year benchmark note, all after US Retail Sales unexpectedly expanded above expectations in August, which eventually morphed into extra legs to the buck.

In the US data space, the flash gauge of the Consumer Sentiment for the month of September will be the only release later in the NA session.

What to look for around USD

Fresh buying interest pushed the dollar to new multi-day weeks near the 93.00 yardstick on the back of higher yields and auspicious data releases in the US on Thursday. In the meantime, the dollar stays underpinned by almost omnipresent concerns around the Delta variant, the progress of the US economic recovery, high inflation and prospects for Fed’s QE tapering.

Key events in the US this week: Flash September Consumer Sentiment (Friday).

Eminent issues on the back boiler: Biden’s multi-trillion plan to support infrastructure and families. US-China trade conflict under the Biden’s administration. Tapering speculation vs. economic recovery. US real interest rates vs. Europe. Debt ceiling debate. Geopolitical risks stemming from Afghanistan.

US Dollar Index relevant levels

Now, the index is losing 0.09% at 92.78 and a break above 92.96 (monthly high Sep.16) would open the door to 93.18 (high Aug.27) and then 93.72 (2021 high Aug.20). On the flip side, the next down barrier emerges at 92.32 (weekly low Sep.14) seconded by 91.94 (monthly low Sep.3) and finally 91.78 (monthly low Jul.30).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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