US Dollar recedes from highs near 94.90, focus on data, Iran, Trump

• The index advanced to session tops near 94.90, albeit lost momentum afterwards.
• US 10-year yields hovering over 2.96%, or weekly tops.
• US flash manufacturing/services PMIs next on tap on the calendar.

The greenback, measured by the US Dollar Index (DXY), is prolonging the weekly up move although it seems to have met strong resistance in the boundaries of 94.90.

US Dollar looks to data, geopolitics

The index is adding to yesterday’s gains and is extending the rebound after bottoming out in the 94.20 region, coincident with the 55-day sma and close to the immediate short-term support line off the mid-June low (around 94.10).

In the meantime, the greenback stays wary of the rising effervescence between the US and Iran, as the latter warned it will react accordingly if the US try to block its oil exports.

Furthermore, the up move in DXY appears underpinned by the better tone in yields of the key US 10-year reference, which managed to regain the 2.96% neighbourhood, or 6-week peaks.

In the data space, Markit will publish its advanced readings of the manufacturing and services PMIs later in the NA session.

US Dollar relevant levels

As of writing the index is up 0.16% at 94.79 facing the next resistance at 94.81 (high Jul.24) seconded by 95.53 (high Jun.28) and finally 95.65 (2018 high Jul.19). On the downside, a breach of 94.27 (55-day sma) would target 94.21 (low Jul.223) en route to 93.71 (low Jul.9).