US Dollar tests 94.00, multi-month peaks

The index clinches new highs beyond the 94.00 handle.
US 10-year yields hovering over the 3.07% level.
Fed-speakers coming up later in the NA session.

Pablo Piovano FXStreet

The greenback, in terms of the US Dollar Index (DXY), has reached fresh 5-month tops in the 94.00 neighbourhood at the beginning of the week.

US Dollar looks to yields, Fedspeak

The rally in the buck remains everything but abated so far today and is now pushing the index to fresh tops in levels above 94.00 the figure, area last visited in December 2017.

The greenback’s up move has been sustained by yields of the key US 10-year reference keeping the trade above the critical 3.0% level, while recent auspicious developments from the US-China trade talks seem to have poured cold water over the likelihood of a trade war.

News from the USD speculative community noted investors are now net longs for the first time since March 13, according to the latest CFTC report for the week ended on May 15.

In the data space, Atlanta Fed R.Bostic (voter, centrist), Philladelphia Fed P.Harker (non voter, hawkish) and Minneapolis Fed N.Kashkari (non voter, dovish) are due to speak later in the day.

US Dollar relevant levels

As of writing the index is gaining 0.31% at 93.96 facing the next hurdle at 94.03 (high May 21) followed by 94.22 (monthly high Dec.11 2017) and then 94.27 (high Oct.5 2017). On the downside, a break below 93.17 (10-day sma) would aim for 93.47 (low May 18) and finally 92.24 (low May 13).

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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