- The index regains steam and trades in session tops in the 93.80 area.
- Yields of the US 10-year benchmark find support below 2.90%.
- G-7 meeting poised to grab all the attention in the next hours.
The greenback, in terms of the US Dollar Index (DXY), is now prolonging the rebound from weekly lows and is testing the upper en of the daily range in the 93.80/85 band.
US Dollar looks to yields, G-7
The correction in the buck from recent lows comes along the rebound in yields of the key US 10-year note from sub-2.90% level to the current 2.92% neighbourhood.
Today’s up move in USD comes after jitters on Italian politics appear to have resurfaced among traders, echoing in wider yield spreads between Germany and Italy and thus forcing EUR/USD to shed further ground.
On another direction, the G-7 meeting in Quebec and its focus on trade will be the salient event in the next hours, all amidst a vacuum of data releases in the US docket.
US Dollar relevant levels
As of writing the index is gaining 0.31% at 93.72 facing the initial up barrier at 94.00 (10-day sma) followed by 94.45 (high May 31) and finally 95.01 (2018 high May 29). On the other hand, a breakdown of 93.22 (low Jun.7) would aim for 92.80 (38.2% Fibo of the April-June up move) and then 92.24 (low May 13).
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