US Dollar flirting with tops near 93.50

Tracked by the US Dollar Index, the greenback is recovering part of the ground lost on Friday, advancing to the mid-93.00s, or daily peaks.

US Dollar eyes on US-SK operations

The index grabbed some buying interest at the beginning of the week as the effervescence on the US political front appears somewhat alleviate so far today.

However, USD should stays under scrutiny later today in light of the US-South Korea joint military exercises, as they carry the potential to spark fresh geopolitical jitters between US and North Korea.

In the meantime, the focus of attention should start shifting to the Jackson Hole Symposium in the second part of the week, where market participants will look for further hints on the next potential steps in monetary policy by the main central banks.

The rebound in DXY comes in tandem with the bounce in yields of the US 10-year reference, managing to retake the 2.20% neighbourhood.

Data wise today, the Chicago Fed National Activity index is only due later in the NA session.

US Dollar relevant levels

As of writing the pair is gaining 0.13% at 93.48 and a breakout of 94.06 (high Aug.16) would open the door to 95.10 (23.6% Fibo of the 2017 drop) and then 96.25 (high Jul.5). On the other hand, the immediate support emerges at 93.33 (21-day sma) seconded by 93.21 (low Aug.17) and finally 92.83 (low Aug.11).