US Dollar tests session peaks around 95.00

The index advanced to the 95.00 handle, or daily highs.
US 10-year yields plummet to 2.85% on risk aversion.
US Housing Starts, Building Permits coming in next.

Pablo Piovano FXStreet

The greenback, in terms of the US Dollar Index (DXY) has reverted the initial negative mood and is now hovering over the 95.00 neighbourhood, or fresh daily tops.

US Dollar looks to tariffs, data

The index is posting gains after two consecutive sessions with losses, keeping the upper end of the recent range around the critical barrier at 95.00 the figure.

Renewed escalation in the US-China trade dispute has sparked a risk-off mood in the global markets, boosting the demand for bonds – thus the lower yields - and safe haven currencies, prompting USD/JPY to drop to the 109.60 handle and dragging the buck lower at the same time.

In the data space, the US housing sector will be in the limelight later today, as June’s Housing Starts and Building Permits are due in the NA session.

US Dollar relevant levels

As of writing the index is up 0.13% at 94.88 facing the next hurdle at 95.14 (2018 high Jun.15) seconded by 95.15 (high Nov.6 2017) and finally 96.51 (high Jul.4 2017). On the other hand, a breach of 94.54 (low Jun.19) would open the door to 94.09 (10-day sma) and then 93.21 (low Jun.6).

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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