US Dollar retreats from tops, still bid above 93.40

  • The index clings to its daily gains in the 93.40 region today.
  • US 10-year yields hovering over 3.10%, a tad lower than multi-year peaks.
  • US Philly Fed Index came in above expectations in May at 34.4.

The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main competitors, has receded from daily tops and is now navigating the 93.40/45 band.

US Dollar now focused on Fedspeak, yields

The index is reverting yesterday’s daily pullback as dip-buyers have re-emerged around today’s lows in the 93.15/10 band.

In addition, the buck remains well underpinned by the robust pace of yields of the US 10-year note, which are orbiting around the critical 3.10% level after climbing to fresh multi-year peaks beyond 3.12% earlier in the day.

Also lending extra legs to USD, May’s Philly Fed manufacturing index surprised to the upside, rising to 34.4, while the Philly Fed New Orders survey jumped to the best print in 45 years.

Later in the day, Minneapolis Fed N.Kashkari (non voter, dovish) and Dallas Fed R.Kaplan (non voter, hawkish) are due to speak.

US Dollar relevant levels

As of writing the index is gaining 0.14% at 93.51 facing the initial hurdle at 93.63 (2018 high May 16) followed by 94.22 (high Dec.11 2017) and then 94.27 (high Oct.5 2017). On the downside, a break below 92.92 (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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