- The index met increasing selling pressure on Tuesday.
- Yields of the US 10-year note climb to daily highs near 3.08%.
- DXY continues to correct lower following Monday’s YTD tops.
The greenback, tracked by the US Dollar Index, is trading on the defensive for another session, testing lows in the 93.30 region.
US Dollar upside capped above 94.00
After recording fresh multi-month peaks above 94.00 the figure on Monday, USD-sellers stepped in and dragged the index to today’s lows in the 93.35/30 band.
The offered tone remains well and sound around the buck during the first half of the week amidst some consolidation in yields of the US 10-year reference above the key 3.0% level.
Furthermore, USD remains so far underpinned by the divergence in monetary policy between the Federal Reserve and the rest of its peers, while the economic growth gap between the US and the main economies of the world also add to the idea of a stronger buck.
Nothing scheduled in the US docket today, while all the attention remains on tomorrow’s FOMC minutes and the speech by Chief J.Powell on Friday.
US Dollar relevant levels
As of writing the index is losing 0.18% at 93.39 and a breakdown of 93.15 (10-day sma) would aim for 93.12 (low May 18) and finally 92.58 (21-day sma). On the flip side, the next up barrier is located at 94.03 (2018 high May 21) followed by 94.22 (monthly high Dec.11 2017) and then 94.27 (high Oct.5 2017).
Share
