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  • The greenback remains bid in the upper-94.00s.
  • US 10-year yields close to 2.88%, rebounds from lows.
  • US Consumer Sentiment came in at 128.00, a tad below estimates.

Tracked by the US Dollar Index (DXY), the buck eased some ground after hitting fresh 2018 tops beyond 95.00 the figure earlier in the session. Support, however, emerged in the vicinity of 94.60 for the time being.

US Dollar retreats from 95.00 and above

The index clinched fresh multi-month tops just beyond the critical 95.00 milestone earlier in the session following increasing jitters over the political uncertainty in Italy and its impact on the single currency via a much weaker EUR/USD.

In the meantime, the buck remains bid despite US Consumer Confidence measured by the Conference Board came in at 128.0 for the month of May, a tad below expectations albeit higher than April’s 125.6.

In addition, house prices tracked by the S&P/Case-Shiller index rose at a non-seasonally-adjusted 6.8% YoY during March, beating initial estimates.

Looking ahead, US ADP report and another revision of Q1 GDP are due tomorrow seconded by inflation figures measured by the PCE on Thursday and the ISM Manufacturing and May’s Non-farm Payrolls on Friday.

US Dollar relevant levels

As of writing the index is gaining 0.30% at 94.70 facing the next resistance at 95.03 (2018 high May 29) followed by 95.15 (monthly highs Oct/Nov. 2017) and finally 96.51 (high Jul.4 2017). On the flip side, a breakdown of 93.87 (10-day sma) would target 93.30 (low May 21) en route to 93.26 (21-day sma).