- The index sparked a correction lower following earlier YTD tops.
- US 10-year yields approaching the 3.08% area, find support near 3.06%.
- Fedspeak, FOMC, US data all in the limelight later in the week.
Gauged by the US Dollar Index (DXY), the greenback has now returned to the 93.75/70 band after climbing beyond 94.00 the figure during early trade.
US Dollar focused on Fedspeak, FOMC
After probing fresh multi-month peaks just above 94.00 the figure, the index met a wave of selling orders and is now navigating the 93.75/70 band amidst a pick up in the sentiment in the risk-associated complex.
The buck continues to trim gains amidst a softer tone in US yields, where the key US 10-year note is meandering in the lower end of the range near 3.08%, shedding some bps since last week’s multi-year peaks in the 3.13% neighbourhood.
Absent releases in the US calendar today, the focus of attention will be on the speeches by Atlanta Fed R.Bostic (voter, centrist), Philladelphia Fed P.Harker (non voter, hawkish) and Minneapolis Fed N.Kashkari (non voter, dovish).
US Dollar relevant levels
As of writing the index is gaining 0.01% at 93.69 facing the next hurdle at 94.06 (2018 high May 21) followed by 94.22 (monthly high Dec.11 2017) and then 94.27 (high Oct.5 2017). On the downside, a break below 93.17 (10-day sma) would aim for 93.47 (low May 18) and finally 92.24 (low May 13).
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