US Dollar turns positive above 93.30
- USD pares initial losses, remains above 93.00.
- Senate tax reform bill expected to pass later today.
- US PCE in the limelight.
The greenback, when tracked by the US Dollar Index (DXY), has managed to leave behind the initial drop and is now returning to the 93.30/35 band, posting marghinal gains for the day.
US Dollar attention to US data
The index is now struggling for direction after a negative start of the session, although it so far manages well to keep the trade above the critical barrier at 93.00 the figure.
USD remains cautious as the Senate-sponsored tax reform bill is expected to pass later in the day, paving the way for a potential implementation by year-end, as promised by President Trump.
DXY saw its upside renewed on Wednesday following a sharp rebound in yields of the US 10-year benchmark to the boundaries of the critical 2.40% up barrier, all in response to better-than-expected US GDP figures for the third quarter.
In the US data space, initial claims are next on tap seconded by personal income/spending and inflation figures gauges by the PCE. In addition, Dallas Fed R.Kaplan (voter, hawkish) is also due to speak.
US Dollar relevant levels
As of writing the index is gaining 0.04% at 93.32 facing the next hurdle at 93.44 (high Nov.29) seconded by 93.58 (55-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).