US Dollar retreats from tops, holding on to 93.00

The US Dollar Index, which tracks the buck vs. its main competitors, has abandoned the area of recent daily highs and is now gyrating around the 93.00 handle.

US Dollar surrenders gains post-PCE

The index has given up some of its initial gains following the release of US inflation figures measured by the PCE, which came in line with prior surveys. In addition, the usual weekly report on the labour market and the Chicago PMI surpassed estimates, while personal spending and personal income showed mixed results.

The upside momentum in USD stays underpinned by the offered bias around EUR/USD as well as month-end flows and yesterday’s results from Q2 GDP and the ADP report, which seems to bode well for the sentiment ahead of tomorrow’s payrolls figures.

In addition, yields of the US 10-year benchmark seems to have found quite tough resistance around 2.15%, returning to the area of 2.13% at the time of writing, removing some tailwinds from DXY.

US Dollar relevant levels

As of writing the index is gaining 0.18% at 93.01 and a break above 93.33 (high Aug.31) would target 93.63 (high Aug.23) en route to 94.14 (high Aug.16). On the other hand, the next support aligns at 91.62 (2017 low Aug.29) followed by 91.51 (low Jan.15 2015) and finally 90.00 (psychological handle).