US Dollar steady around 94.50, Yellen eyed


  • DXY stays choppy in the mid-94.00s.
  • US 10-year yields firm above 2.41%.
  • Yellen, other central bankers on sight.

The greenback, in terms of the US Dollar Index (DXY), is extending its erratic fashion during the first half of the week and is now hovering over the 94.50/45 band.

US Dollar focused on yields, Yellen

The greenback keeps attempting a consolidative theme in the lower end of the recent range after being rejected from tops just above 95.00 the figure in past sessions.

DXY still remains sceptic despite the rebound in yields of the US-10 year reference to highs above the 2.41% area, challenging at the same time 3-week tops.

Adding to the uncertain scenario surrounding the buck, the US tax reform sponsored by the White Hose appears in the middle of the nowhere so far, sparking further scepticism among investors.

In addition, Chicago Fed C.Evans said earlier in the session that the Federal Reserve needs to clinch the inflation target in order to allow new policies to succeed.

Event-wise today, Chairwoman J.Yellen will speak at a policy panel organised by the ECB, while St. Louis Fed J.Bullard (2019 voter, centrist) and Atlanta Fed R.Bostic (2018 voter, centrist) are also due to speak later in the NA session.

In the US data space, October producer prices are only due for release.

 US Dollar relevant levels

As of writing the index is losing 0.03% at 94.48 and a breakdown of 94.31 (21-day sma) would target 94.26 (low Nov.10) and finally 94.03 (23.6% Fibo of the 2017 drop). On the upside, the immediate resistance aligns at 95.15 (high Nov.7) seconded by 95.90 (38.2% Fibo of the 2017 drop) and then 96.55 (200-day sma).

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