US Dollar advances to daily highs near 93.40

The greenback is prolonging its upside momentum during the first half of the week, now sending the US Dollar Index to the upper end of the range near 93.40.

US Dollar bid on USTs

The index regained buying interest following the positive performance in yields of the key US 10-year reference, moving to fresh 3-day tops above the 2.31% handle.

USD remains underpinned by Sunday’s comments by Chief J.Yellen, while the potential appointment of J.Taylor as the next Fed’s Chairman lent renewed oxygen to the index. According to market participants, Taylor has a more hawkish message and could surely be a source of potential upside for the buck.

In today’s US data space, industrial and manufacturing production figures are due, seconded by capacity utilization, the NAHB index, TIC flows and the speech by Dallas Fed R.Kaplan (voter, hawkish).

US Dollar relevant levels

As of writing the index is gaining 0.18% at 93.22 and a break above 94.03 (23.6% Fibo of the 2017 drop) would expose 94.27 (high Oct.6) and finally 95.90 (38.2% Fibo of the 2017 drop). On the downside, the immediate support lines up at 93.10 (21-day sma) seconded by 92.92 (55-day sma) and then 92.75 (low Oct.13).