US Dollar moves to fresh YTD peaks above 94.50
- The index climbs to test the mid-94.00s on Tuesday.
- US 10-year yields extend the leg lower below the 2.90% level.
- CB’s Consumer Confidence next of relevance in the US docket.
Tracked by the US Dollar Index (DXY), the greenback is now gathering upside momentum and advances to fresh multi-month tops beyond 94.50.
US Dollar in fresh 2018 highs
The USD rally stays everything but abated so far today, moving to the area of fresh tops in the 94.50/60 band, levels last visited in early November 2017.
Adding to the upbeat mood around the buck, Italian politics keeps weighing on the single currency and forces EUR/USD to break below the critical 1.1600 support, recording at the same time new multi-month troughs.
The rally in the greenback comes despite the continuation of the down move in yields of the US10-year note below the 3.0% level, currently dropping to the 2.98% neighbourhood.
Additionally, the Trump-Kim Jong meeting next month has regained traction while negotiations continue on the US-China trade front.
In the data space, the Conference Board will publish its Consumer Confidence gauge later in the NA session, seconded by house prices tracked by the S&P/Case-Shiller index for the month of March.
US Dollar relevant levels
As of writing the index is gaining 0.11% at 94.52 facing the next resistance at 94.57 (2018 high May 29) followed by 95.15 (monthly highs Oct/Nov. 2017) and finally 96.51 (high Jul.4 2017). On the flip side, a breakdown of 93.87 (10-day sma) would target 93.30 (low May 21) en route to 93.26 (21-day sma).