US Dollar treading water around 94.00

DXY attempting to retake 94.00
US 10-yield tested 2.41% before giving up some ground
President Trump should name Yellen’s successor soon

Pablo Piovano FXStreet

The greenback, tracked by the US Dollar Index (DXY), has managed to bounce off daily lows in the 93.70/65 band and is now hovering over the 94.00 handle.

US Dollar attention to yields, Trump

The index is now extending the recovery to the 94.00 neighbourhood backed by another up tick in yields of the US 10-year benchmark, which are trading in the upper end of the range around 2.41%.

In the meantime, the upbeat tone remains intact around USD following another record high in US stocks.

Additionally, investors stay vigilant on the imminent announcement by President Trump of Yellen’s successor at the helm of the Federal Reserve, with (hawkish) candidate J.Taylor still being the front-runner ahead of FOMC’s (dovish) J.Powell and former FOMC Governor K.Warsh (centrist/hawkish).

In the US data space, Markit’s advanced manufacturing PMI is expected at 54.5 for the current month, while services PMI is seen at 55.9, both print surpassing initial estimates. Later in the session, the American Petroleum Institute (API) will publish its weekly report on US crude oil supplies.

US Dollar relevant levels

As of writing the index is gaining 0.10% at 93.95 facing the next resistance at 94.03 (23.96% Fibo of the 2017 drop) followed by 94.10 (100-day sma) and finally 94.27 (high Oct.6). On the flip side, a break below 93.41 (21-day sma) would aim for 93.06 (low Oct.19) and then 92.75 (low Oct.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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