US Dollar a tad weaker, holding on to 94.00
- DXY started the European session on a weak note.
- US yields recede from recent tops.
- Second-tier US data unlikely to attract attention.
The greenback, measured by the US Dollar Index, is posting marginal losses early on Tuesday and is currently gyrating around the critical 94.00 handle.
US Dollar looks to US tax reform for direction
The index is fading part of yesterday’s gains although it so far manages to keep business in the 94.00 neighbourhood.
Uncertainty around the US tax reform bill keeps weighing on the buck in the meantime, as absent consensus among Republicans continue to prevent further progress in the matter. Latest news around the subject saw Treasury Secretary S.Mnuchin showing optimism that the bill could be passed by Christmas.
On another direction, yesterday’s climb in yields of the US 10-year benchmark halted around the 2.37% area, sparking a small correction lower to the current 2.36% area.
Ahead in the session, existing home sales for the month of October and the Chicago Fed national activity index will be the only data releases today ahead of the API’s weekly report on US crude oil supplies.
US Dollar relevant levels
As of writing the index is retreating 0.08% at 94.00 and a breakdown of 93.60 (100-day sma) would aim for 93.43 (55-day sma) and finally 93.40 (low Nov.15). On the other hand, the initial hurdle lines up at 94.15 (10-day sma) seconded by 94.37 (21-day sma) and then 95.15 (high Nov.7).