US Dollar reverses the spike to 92.60, back around 92.40

Pablo Piovano FXStreet

Tracked by the US Dollar Index (DXY), the greenback has quickly reverted the up tick to tops beyond 92.60 and is now returning to the current 92.30 region.

US Dollar offered despite upbeat US CPI

The index quickly advanced to fresh tops beyond 92.60 following higher-than-expected inflation figures in the US economy during last month, although the up move lacked of follow through and quickly prompted USD-bears to return to the markets.

Anyway, the better CPI data seems to be enough to keep US yields in the upper bound of the daily range near the key 2.20% level for the time being, while the probability of a rate hike at the December meeting is now at just below 51%, according to CME Group’s FedWatch tool, based on Fed Funds futures prices.

Looking ahead, the buck should stay under pressure in light of tomorrow’s release of US retail sales for the month of August and the advanced print of US consumer confidence.

US Dollar relevant levels

As of writing the index is retreating 0.01% at 92.38 and a breakout of 92.64 (high Sep.14) would aim for 93.35 (low Aug.31) and finally 93.70 (55-day sma). On the other hand, the immediate support emerges at 92.16 (10-day sma) seconded by 91.71 (low Sep.13) and then 91.01 (2017 low Sep.8).

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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