- The index bounces off weekly lows around 93.20 on Friday.
- US 10-year yields ease to the 2.92% neighbourhood.
- No data in the US docket. All the looks on the G-7 meeting in Canada.
The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main rival currencies, is finally gathering some upside traction and is testing the 93.60 region, or daily peaks.
US Dollar looks to Canada
The index is posting gains for the first time since Monday, managing to come back from weekly lows in the 93.20 region, although still navigating the red territory on a weekly basis.
The greenback has been hit throughout the week following a sharp pick up in the demand for EUR and a somewhat generalized positive mood in the riskier assets.
In fact, recent hawkish comments (wishes?) from ECB officials opened the door for some sort of announcement regarding the ECB-tapering at the central bank’s meeting on June 14, lending extra support to the European currency.
Absent relevant publications in the US calendar this week, market participants will closely follow the developments from the G-7 meeting in Canada on June 8-9, where trade will be in centre stage in light of the ongoing conflicts between US-China and US-EU.
US Dollar relevant levels
As of writing the index is gaining 0.15% at 93.57 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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