US Dollar trims losses, hovers over 93.60

• Rebound in US yields help DXY to regain ground.
• Trump’s tax plan found obstacles among Republicans.
• Focus on ECB meeting and QE prospects.

The greenback, when tracked by the US Dollar Index, has manage to leave the area of daily lows and is now regaining the 93.60/65 band following the opening bell in the Old Continent.

US Dollar focused on ECB event, yields

The index found a tough hurdle around the 100-day sma just above 94.00 the figure earlier in the week and this level is now acting as an interim resistance area.

In the meantime, yields of the key US 10-year reference climbed to fresh multi-month tops in the vicinity of 2.48% on Wednesday, although they lost upside momentum soon afterwards towards the 2.41% handle.

The up move in the buck run out of some steam as of late after the tax reform proposed by President Trump seems to face more difficulties than initially estimated among Republicans, although everybody in the US Senate agreed on the deadline to pass the legislation by year-end.

In the US data space today, the usual report on the labour market is next on tap followed by pending home sales for the month of September and the speech by Minneapolis Fed N.Kashkari (voter, dovish).

US Dollar relevant levels

As of writing the index is down 0.03% at 93.63 and a breakdown of 93.51 (10-day sma) would aim for 93.46 (21-day sma) and then 93.06 (low Oct.19). On the other hand, the next hurdle aligns at 94.04 (100-day sma) followed by 94.27 (high Oct.6) and finally 95.90 (38.2% Fibo of the 2017 drop).