US Dollar regains 94.50, US yields rebound

The greenback, gauged by the US Dollar Index, seems to have recovered the smile on Wednesday and is now testing the area of session tops in the 94.50/60 band.

US Dollar looks to data, yields

After bottoming up in fresh 10-month lows near 94.20 on Tuesday, the index seems to have found dip-buyers and regained some buying interest, moving higher towards the 94.60 area as US political effervescence appear to be taking a breather for the time being.

The buck is attempting a rebound in tandem with yields in the US money markets, where the 10-year benchmark is navigating the 2.27% level after briefly testing the sub-2.26% area yesterday. Yields are testing the lower bound of the monthly range so far, coming down from fresh 2-month tops near 2.40% seen early in July.

Despite ‘Trumpcare’ and the recent fiasco from Republicans should still prevail in the headlines, the focus of attention in the US should start shifting to the long-waited tax reform, one of President Trump’s main themes when still in presidential campaign.

In the US data space, building permits, housing starts and the EIA’s weekly report on US crude oil inventories are all expected later in the session.

US Dollar relevant levels

The index is up 0.05% at 94.50 facing the next hurdle at 95.24 (10-day sma) seconded by 95.61 (high Jul.14) and finally 95.96 (high Jul.11). On the flip side, a break below 94.27 (2017 low Jul.18) would open the door to 94.20 (low Aug.26 2016) and then 94.05 (low Aug.18 2016).