- The index is trading in weekly peaks further north of the 90.00 mark.
- US 10-year yields flirting with tops above the 2.93% level.
- Risk-on sentiment continues to bolster the up move in USD.
The greenback, in terms of the US Dollar Index (DXY), accelerates the upside today and is already trading in fresh multi-day tops beyond the 2.93% level, area last seen in February.
US Dollar follows higher yields, risk-on
The greenback is clinching its fourth consecutive session with gains on Friday, sharply reverting the weakness seen at the beginning of the week and staying firm to close the week in the positive territory.
The sharp rebound in the buck comes along a robust pick up in yields of the key US 10-year note, climbing to multi-week tops near the 2.94% region, up more than 10 bp since April lows in the 2.71% neighbourhood.
Collaborating with the upside momentum in USD, the risk sentiment prevailing in the risk-associated universe keeps fuelling the JPY sell-off and thus giving extra wings to USD/JPY, while munting selling pressure around EUR also adds to the greenback’s climb.
Event-wise today, Chicago Fed C.Evans (non voter, centrist) is due to speak later in the NA session in an otherwise empty US calendar.
US Dollar relevant levels
As of writing the index is up 0.44% at 90.29 and a break above 90.44 (high Mar.20) would open the door to 90.60 (high Apr.6) and finally 90.89 (38.2% Fibo of 95.15-88.25). On the other hand, the next down barrier lines up at 89.69 (10-day sma) followed by 89.23 (low Apr.17) and then 88.94 (low Mar.27).
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