- The index met decent support in the 93.30 region earlier in the day.
- Yields of the US-10 year note eased from tops near 3.08%.
- Next of relevance for USD will be tomorrow’s FOMC minutes.
The US Dollar Index (DXY), which gauges the buck vs. its main competitors, manages to revert part of the initial drop to session lows and is now flirting with the positive territory in the 93.55/60 band.
US Dollar looks to FOMC
After bottoming out in the 93.30 region during early trade, the greenback found some dip-buyers and is now lifting the index back to the mid-93.00s.
The greenback seems to have now decoupled from the performance of yields in the key US 10-year note, which are retreating to the 3.06% region after briefly testing highs around 3.08%.
Easing tensions in the US-China trade talks and diminishing geopolitical effervescence have been also collaborating with the up move in the buck to levels last seen in December 2017 just above 94.00 the figure (Monday), where it seems to have met some sellers.
Looking ahead, the FOMC minutes will be published tomorrow, preceding the speech by Chief J.Powell on Friday.
US Dollar relevant levels
As of writing the index is losing 0.04% at 93.51 and a breakdown of 93.29 (low May 22) would target 93.16 (10-day sma) en route to 93.12 (low May 18). On the flip side, the next up barrier is located at 94.03 (2018 high May 21) followed by 94.22 (monthly high Dec.11 2017) and then 94.27 (high Oct.5 2017).
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