US Dollar eases from tops near 95.30 on mixed US data

• The index prints 2018 tops around 95.30 and retreats afterwards.
• US 10-year yields rebound and test the vicinity of 2.89%.
• US Housing Starts rose more than expected. Permits contracted.

The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rivals, is trading in the upper end of the range, a tad lower from earlier 2018 peaks in the 95.30 region.

US Dollar gives away some gains on data

The index clinched fresh 2018 tops around 95.30 although it lost some momentum following mixed results from the US housing sector during May.

In fact, Housing Starts expanded more than expected at a monthly 5.0% – or 1.350 million units – while Building Permits contracted 4.6% inter-month, or 1.301 million units.

The greenback reverted the initial softness as market participants have been adjusting to recent developments from the US-China trade dispute and the subsequent pick up in the risk-off sentiment.

In addition, USD has derived extra support from the increasing selling pressure surrounding EUR, accelerated today after ECB President Draghi’s speech at the Forum in Sintra (Portugal).

US Dollar relevant levels

As of writing the index is up 0.41% at 95.14 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 94.09 (10-day sma) and then 93.21 (low Jun.6).