US Dollar clinches 2018 tops near 95.40 then retreats

• The index prints fresh YTD peaks around 95.40.
• Yields of the US 10-year note recede to the 2.93% area.
• US Philly Fed Index and Initial Claims next on tap.

The greenback, tracked by the US Dollar Index (DXY), remains firm so far this week and managed to record a new 11-month top around 95.40 earlier in the session, albeit losing some ground afterwards.

US Dollar looks to data, sentiment

The index is advancing since Monday, keeping the upside bias unaltered and printing once again a new YTD peaks around 95.40, although receding a tad soon afterwards.

The up move in the buck comes along a rebound in yields of the US 10-year note to the 2.95% neighbourhood, where they seem to have found some resistance for the time being.

In the data space, the Philly Fed manufacturing gauge will be the salient publication later in the session, seconded by the usual weekly report on the labour market.

In the meantime, the absence of headlines around the US-China trade war appears to have motivated investors to shift their attention to the divergence in monetary policy between the Federal Reserve and its main peers, all reflected via a wider gap of yields in the money markets.

US Dollar relevant levels

As of writing the index is up 0.17% at 95.29 facing the next hurdle at 95.41 (2018 high Jun.21) seconded by 96.00 (psychological level) and finally 96.51 (high Jul.4 2017). On the other hand, a breach of 94.53 (low Jun.19) would open the door to 94.44 (10-day sma) and then 94.22 (21-day sma).