US Dollar up smalls around 94.60

• USD slightly positive, 95.00 still caps.
• US yields treading water below 2.40%.
• Focus on tax reform, Trump’s decision on Fed Chief.

The US Dollar Index (DXY), which tracks the greenback vs. its main competitors, is recovering part of yesterday’s pullback and is navigating narrow range around the 94.60 region.

US Dollar attention on data, yields

The index has started the week on a weak note, although it is so far managing to revert, albeit partially, Monday’s drop to the vicinity of the 94.45/40 band.

Yields of the key US 10-year reference seem to have found some support in sub-2.38% area, where are now looking to consolidate and always against the backdrop of renewed effervescence in the US political scenario.

Further out, the greenback is poised to stay under scrutiny in light of the FOMC meeting due tomorrow and President Trump’s decision on the next Fed Chief, expected on Thursday.

On the latter, the buck eased some ground on Friday after rumours that Trump could lean towards FOMC’s J.Powell to lead the Federal Reserve were hitting the wires.

In the US data space, the S&P/Case-Shiller index, Chicago PMI and CB’s consumer confidence for the month of October are all due later along with the weekly report on US crude oil supplies by the American Petroleum Institute (API).

US Dollar relevant levels

As of writing the index is gaining 0.03% at 94.53 facing the next up barrier at 95.15 (high Oct.27) followed by 95.90 (38.2% Fibo of the 2017 drop) and then 96.81 (200-day sma). On the other hand, a breakdown of 94.27 (high Oct.6) would expose 94.03 (23.6% Fibo of the 2017 drop) and finally 93.48 (low Oct.26).