US Dollar firmer, closer to 94.00

The greenback, tracked by the US Dollar Index (DXY), is trading on a firm note at the beginning of the week and closer to the critical up barrier at 94.00 the figure.

US Dollar looks to USTs

The index is adding to Friday’s gains and navigating the area of multi-day tops in the 93.80/90 band as the sentiment surrounding the buck stays pretty solid for the time being.

The Dollar’s momentum remains underpinned by the healthy up move in yields of the key US 10-year benchmark, currently just off recent tops in the vicinity of the 2.40% mark.

In addition, expectations of the implementation of the tax reform proposed by the White House at some point in Q4 keep sustaining the buck following the US Senate approval of the federal budget last Thursday.

Further out, speculators increased their USD net short positions to the highest level in the last three weeks in the week to October 17, as per the latest CFTC report.

In the US data space, only the Chicago Fed index is expected today ahead of tomorrow’s flash manufacturing PMI and Wednesday’s durable goods orders.

US Dollar relevant levels

As of writing the index is gaining 0.18% at 93.86 and a break above 94.03 (23.96% Fibo of the 2017 drop) would aim for 94.13 (100-day sma) and finally 94.27 (high Oct.6). On the flip side, the immediate support aligns at 93.36 (21-day sma) seconded by 93.06 (low Oct.19) and then 92.94 (55-day sma).