US Dollar firm around 93.40, Fedspeak, Trump on sight

In terms of the US Dollar Index (DXY), the greenback is extending the rally well above the key 93.00 handle, although it seems to have found a strong hurdle around 93.40 for the time being.

US Dollar bid ahead of Fedspeak

DXY is trading in fresh 6-week tops in the 93.40 region today, extending the up move for the third consecutive week amidst the ongoing sell off in EUR, renewed expectations on Trump’s tax reform plans and a hawkish perception by investors of yesterday’s speech by Chief Janet Yellen.

The greenback’s rally is also deriving extra legs from the solid rebound in yields of the US 10-year benchmark, advancing to fresh tops beyond the 2.31% handle albeit losing some ground afterwards.

In the data space, the buck stayed apathetic after US durable goods orders surprised to the upside in August, while pending home sales came in below estimates during the same period.

Market participants, instead, will look to upcoming speeches by FOMC’s L.Brainard (permanent voter, dovish), Minneapolis Fed N.Kashkari (voter, dovish), St. Louis Fed J.Bullard (2019 voter, dovish) and Boston Fed E.Rosengren (2019 voter, centrist).

US Dollar relevant levels

As of writing the index is gaining 0.55% at 93.32 and a break above 93.61 (high Sep.27) would open the door to 94.03 (23.6% Fibo of the 2017 drop) and finally 94.14 (high Aug.16). On the other hand, the immediate support lines up at 92.37 (10-day sma) seconded by 91.61 (low Sep.20) and finally 91.01 (2017 low Sep.8).