US Dollar pares losses, approaches 93.00

The greenback – tracked by the US Dollar Index – has managed to bounce off daily lows and is now getting closer to the key up barrier at 93.00 the figure.

US Dollar attention to US CPI

The index is giving away some of yesterday’s gains, although it remains reluctant to drop further in light of recent auspicious results from US producer prices in September and ahead of today’s more relevant inflation figures tracked by the CPI.

In the meantime, USD is looking to consolidate the drop from last week’s tops in the 94.30 region, finding quite decent contention in the 92.80 area (Thursday’s lows). The down move has been in tandem with the leg lower in yields of the key US 10-year reference after being rejected near 2.40% in the wake of payrolls figures.

Other than the CPI, retail sales for the month of September and the flash print of the consumer confidence gauged by the Reuters/Michigan index is also due. In addition, Boston Fed E.Rosengren (2019 voter, hawkish), Chicago Fed C.Evans (voter, centrist), Dallas Fed R.Kaplan (voter, dovish) and FOMC’s permanent voter J.Powell (dovish) are all due to speak later in the session.

US Dollar relevant levels

As of writing the index is losing 0.06% at 92.88 facing the initial support at 92.80 (low Oct.12) seconded by 91.53 (low Sep.20) and then 91.01 (2017 low Sep.4). On the upside, a breakout of 93.45 (10-day sma) would pave the way for a visit to 94.03 (23.6% Fibo of the 2017 drop) and finally 94.27 (high Oct.6).