- The index is up smalls above the key 95.00 handle.
- US 10-year yields flirting with highs near 2.91%.
- Chief J.Powell will speak at the ECB Forum later in the day.
The greenback, in terms of the US Dollar Index (DXY), is sticking to the positive territory so far today and so far manages well to keep the trade above 95.00 the figure.
US Dollar looks to tariffs, Powell
The index is up for the second session in a row on Wednesday, looking to add more sustainability to the recent breakout of the critical 95.00 milestone amidst rising concerns on the US-China trade front and a rebound in US yields.
In fact, the buck stays firm despite the ongoing escalation in the US-China trade dispute, although market participants remain wary on the potential announcement of further tariffs on US imports from China worth $200 billion.
In the meantime, yields of the key US 10-year note are testing t he area of daily highs in the 2.91% neighbourhood, coming up from yesterday’s lows around 2.85%.
Later in the day, Fed’s J.Powell will speak at a panel at the ECB Forum in Sintra (Portugal) along with ECB’s M.Draghi and BoJ’s H.Kuroda. in the data space, US Existing Home Sales for the month of May are due seconded by the EIA’s weekly report on US crude oil stockpiles.
US Dollar relevant levels
As of writing the index is up 0.11% at 95.11 facing the next hurdle at 95.30 (2018 high Jun.19) seconded by 96.00 (psychological level) and finally 96.51 (high Jul.4 2017). On the other hand, a breach of 94.54 (low Jun.19) would open the door to 94.24 (10-day sma) and then 94.16 (21-day sma).
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