US Dollar looks to advance above 90.00

  • The greenback has started the session on a positive fashion.
  • US 10-year yields rebounds to daily highs around 2.88%.
  • US February’s CPI figures next of relevance later in the NA session.

The US Dollar Index (DXY) – which gauges the greenback vs. a basket of its main rival currencies – is posting decent gains early in the European morning around the critical 90.00 neighbourhood.

US Dollar now looks to CPI

After two consecutive daily pullbacks, the index is now navigating the positive territory around the psychological handle at 90.00 the figure sustained by a softer bias in the risk-associated atmosphere.

The rebound in the buck has been accompanied by a bounce off session lows in yields of the key US 10-year note, currently retaking the 2.88% area after bottoming out near 2.86% on Monday.

In the meantime, the buck regained some attention following the sell-off post-Payrolls, which found strong support in the 89.80 zone, although a stronger catalyst is need to push the index beyond the 90.00 milestone on a more sustainable fashion.

Looking ahead, USD will be under the microscope in light of the publication of February’s inflation figures tracked by the CPI. Market consensus sees headline prices rising 2.2% YoY and 1.8% YoY when stripping food and energy costs.

US Dollar relevant levels

As of writing the index is up 0.20% at 90.10 facing the next hurdle at 90.57 (high Feb.8) seconded by 90.93 (high Mar.1) and finally 91.00 (high Jan.18). On the downside, a break below 89.43 (low Mar.7) would open the door to 88.44 (low Jan.26) and finally 88.25 (2018 low Feb.16).

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