US Dollar moves to session tops, 94.00 just around the corner

  • The index clinches fresh 2018 tops near 93.80.
  • US 10-year yields navigate session lows in sub-3.10% zone.
  • Cleveland Fed L.Mester said the economy is close to the Fed’s targets.

Measured by the US Dollar Index, the buck keeps the rally well and sound on Friday, advancing to the 93.80 region and clinching at the same time fresh multi-month tops.

US Dollar now targets 94.00 and above

The index is prolonging the upside to levels last seen five months ago around 93.80 and now faces the next target in the 94.20/25 band, monthly peaks on December 11.

Absent releases in the US calendar today, market attention shifted to the broad risk appetite trends while monetary policy divergence between the Fed and its peers remains a key driver underpinning the bull move in the buck.

The better tone in the greenback comes despite yields of the key US 10-year benchmark are extending the correction lower to the 3.08% area after hitting multi-year tops just below 3.13% during earliy trade.

Nothing regarding monetary policy from FOMC’s L.Brainard speech, while Cleveland Fed L.Mester said earlier that the US economy stays close to the Fed’s goals.

Earlier in the day, Cleveland Fed L.Mester (voter, hawkish) said the US economy is near the Fed’s goals.

Later in the session, Dallas Fed R.Kaplan (non voter, hawkish) is also due to speak.

US Dollar relevant levels

As of writing the index is gaining 0.28% at 93.74 facing the next hurdle at 94.00 (psychological level) followed by 94.22 (monthly high Dec.11 2017) and then 94.27 (high Oct.5 2017). On the downside, a break below 93.02 (10-day sma) would aim for 92.59 (23.6% Fibo of 89.23-93.45) and finally 92.24 (low May 13).

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