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  • The index looks to extend the breakout of the 94.00 handle.
  • US 10-year yields poking with daily highs near 2.88%.
  • Later in the NA session, US Payrolls and ISM Manufacturing are due.

The greenback, tracked by the US Dollar Index (DXY), is looking to consolidate the trade above the 94.00 handle after bottoming out in the vicinity of the 93.70 area on Thursday.

US Dollar looks to NFP

After two consecutive daily pullbacks, the index has regained the 94.00 handle and looks to move further north of this critical barrier.

On the trade front, President Trump imposed tariffs on US imports of steel and aluminum from trade partners in North America and Europe. However, the greenback barely reacted to the news, as some fatigue by market participants is observed around these headlines.

On another direction, US-China trade talks appear ‘on hold’ for the time being, while the likelihood of a Trump-Kim Jong meeting later this month remains on the cards.

The bullish attempt in the buck is now accompanied by a rebound in yields of the key US 10-year reference to daily highs around 2.88%, all ahead of the publication of critical figures from the US labour market for the month of May.

Apart from Non-farm Payrolls, investors will be looking to the release of the ISM Manufacturing during last month, Construction Spending results and the speech by Minneapolis Fed N.Kashkari (non voter, dovish).

US Dollar relevant levels

As of writing the index is gaining 0.14% at 94.11 facing the next hurdle at 95.01 (2018 high May 29) seconded by 95.15 (monthly highs Oct/Nov. 2017) and finally 96.51 (high Jul.4 2017). On the flip side, a breach of 93.72 (low May 31) would aim for 93.64 (23.6% Fibo of the April-June up move) and then 93.50 (21-day sma).