- The index resumes the downside and tests the 93.60 region.
- US 10-year yields flirt with highs around 2.94%.
- US Trade Balance figures next of relevance later in the NA session.
The greenback, in terms of the US Dollar Index (DXY), has resumed the downside and is now probing the area of daily highs in the vicinity of 93.60.
US Dollar looks to risk trends, data
The index is down for the third session in a row on Wednesday, prolonging the weekly correction lower in response to somewhat hawkish comments from ECB officials, boosting EUR/USD to fresh tops beyond 1.1700 the figure and undermining any recovery in the buck.
In fact, news agency Bloomberg hinted yesterday that the ECB could start unwinding its bond-purchase programme at some point by year-end. In this regard, BuBa’s Weidmann said expectations for an end of QE by year-end are ‘plausible’.
The down move in USD comes amidst yields of the key US 10-year reference advancing to fresh daily highs in the proximity of the 2.95% mark.
On the data front, US Trade Balance figures for the month of April are next on tap, seconded by Unit Labor Cost and Non-farm Productivity for Q1. In addition, the EIA will release its weekly report on US crude oil stockpiles.
US Dollar relevant levels
As of writing the index is losing 0.25% at 93.65 and a breakdown of 93.42 (high May 8) would aim for 92.80 (38.2% Fibo of the April-June up move) and then 92.24 (low May 13). On the upside, the next hurdle emerges at 94.08 (10-day sma) followed by 94.45 (high May 31) and finally 95.01 (2018 high May 29).
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