US Dollar keeps gains, sidelined below 90.00
- DXY stays bid albeit a break above 90.00 remains elusive.
- Decline in US 10-year yields met support around 2.88%.
- Upcoming Fed-speakers should keep the attention on USD later in the day.
The greenback, in terms of the US Dollar Index (DXY), keeps the buying pressure unchanged so far this week and is now sidelined around the 89.80 area.
US Dollar focused on Fed speakers
The index remains on its way to close the week in the positive territory on Friday, partially reverting the pullback seen in the previous week, which included fresh multi-month lows in the 88.30/20 band.
The up move in the buck came along a climb in yields of the US 10-year benchmark to levels closer to the psychological 3.0% level, all somewhat propped up by the hawkish-ish message from the FOMC in its minutes (Wednesday).
Looking at the broader picture, the greenback should remain focused on the increasing ‘twin deficits’ issue, USD liquidity, the pick up in inflation, protectionism and the Fed’s plan regarding its tightening cycle, all against the backdrop of unabated uncertainty in the US political arena.
Later in the session, New York Fed W.Dudley (permanent voter, centrist), Boston Fed E.Rosengren (2019 voter, centrist), Cleveland Fed L.Mester (voter, hawkish) and San Francisco Fed J.Williams (voter, centrist) are all due to speak.
US Dollar relevant levels
As of writing the index is up 0.23% at 89.95 and a break above 90.23 (high Feb.22) would aim for 90.57 (high Feb.8) and then 91.00 (high Jan.18). On the flip side, the immediate support emerges at 89.52 (10-day sma) followed by 88.44 (low Jan.26) and finally 88.26 (2018 low Feb.16).