US Dollar returns to 93.00 ahead of Yellen
- DXY gives away some gains, trades close to 93.00.
- USD vigilant on US tax reform bill.
- Chief Yellen testifies before Congress on economic outlook.
The US Dollar Index (DXY), which gauges the buck vs. its main rival currencies, stays on the defensive today and appears on its way to challenge the key support at 93.00 the figure.
US Dollar attention to US data, Yellen
The index is now reverting the positive start of the week after advancing on Monday and Tuesday, and is fading part of yesterday’s spike to the 93.30 area.
The greenback gathered extra traction on Tuesday after a positive meeting between President Trump and Senate Republicans, which seems to have paved the way for a vote of the tax reform bill on Thursday.
In the meantime, the greenback appears decoupled from the performance of yields in the US money markets as of late. In fact, yields of the US 10-year note remain within a consolidative theme amidst the absence of relevant catalysts/market-movers.
Looking ahead, the greenback should stay in centre stage later in the session in light of the testimony by Chair J.Yellen before the Joint Economic Committee of Congress on economic outlook. In addition, NY Fed W.Dudley (permanent voter, centrist) and San Francisco Fed J.Williams (2018 voter, centrist) are also scheduled to speak. In the data space, the second revision of the US Q3 GDP will be the salient event today seconded by October’s pending home sales and the Fed’s Beige Book.
US Dollar relevant levels
As of writing the index is gaining 0.23% at 93.05 facing the next hurdle at 93.33 (high Nov.28) seconded by 93.41 (10-day sma) and then 94.03 (23.6% Fibo of 2017 drop). On the flip side, a break below 92.50 (low Nov.27) would open the door to 91.78 (low Sep.22) and then 91.53 (low Sep.20).