US Dollar sticks to gains near 93.50

The US Dollar Index – which gauges the buck vs. its main rivals – is looking to extend its positive momentum around the mid-93.00s for the time being.

US Dollar boosted by rumours, cautious on Draghi

The index has managed to regain buying interest on Tuesday following Monday’s pullback, gathering traction on news that the Trump’s administration would be assessing its long-waited tax reform plans.

The news propelled both the greenback and the US 10-year yields, briefly testing fresh tops in the 2.22% area after bottoming out near 2.16% last Friday.

Market attention should start to shift towards the Jackson Hole Symposium on Thursday and Friday and the speech by Chief Janet Yellen.

Data wise today in the US docket, advanced Markit’s PMI is due along with new home sales, the EIA weekly report on US crude inventories and the speech by Dallas Fed R.Kaplan (voter, hawkish).

US Dollar relevant levels

As of writing the index is gaining 0.03% at 93.45 and a breakout of 94.14 (high Aug.16) would aim for 95.08 (55-day sma) and finally 95.21 (23.6% Fibo of the 2017 drop). On the flip side, the next support emerges at 93.00 (low Aug.21) seconded by 92.93 (low Aug.11) and then 92.55 (2017 low Aug.2).