US Dollar keeps 90.00 and above: Fedspeak, shutdown on sight

• DXY advanced to multi-day tops beyond 90.00.
• US 10-year yields back above 2.80%.
• Fedspeak next on tap.

The greenback, in terms of the US Dollar Index, has receded from earlier tops around 90.40 although it manages well to keep the trade above the psychological 90.00 handle.

US Dollar attention to Fedspeak

The index advanced to fresh 2-week tops near 90.50 during early trade on the back of heightened volatility and higher yields in the US money markets. In this regard, yields of the key US 10-year reference climbed to as high as the 2.86% area, losing some momentum soon afterwards.

In the meantime, USD keeps the bid tone so far this week, as market participants still appear reluctant to return to the risk-associated space in light of the recent sell-off.

On another front, the buck should remain vigilant on the US political scenario, as the US Senate announced yesterday a 2-year spending bill that suspends the debt limit until March 2019. The current short-term funding bill expires today and there are risks of a government shutdown tomorrow in case the bill is rejected.

Later in the NA session, the usual weekly report on the US labour market is due along with speeches by Dallas Fed R.Kaplan (hawkish), Philadelphia Fed P.Harker (hawkish), Minneapolis Fed N.Kashkari (dovish) and KC Fed E.George (2019 voter, hawkish).

US Dollar relevant levels

As of writing the index is losing 0.02% at 90.28 facing the immediate support at 88.55 (low Feb.2) seconded by 88.42 (2018 low Jan.25) and finally 86.82 (weekly trend line off 72.70). On the flip side, a break above 90.40 (high Feb.7) would target 90.70 (high Jan.22) en route to 90.98 (high Jan.18).