USD climbs to session peak near 100.25 ahead of data

The greenback, as measured by the US Dollar Index has managed to recover early lost ground to fresh monthly low, below the key 100.00 psychological mark, and is now placed at session tops near 100.25 region. 

Following overnight steep sell-off, led by the US President Donald Trump's comments that the dollar is getting "too strong” and could hurt the economy, Thursday's modest recovery move could be categorized as corrective as investors seemed to readjust their positions ahead of the US macro data, later during the day.

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Meanwhile, stabilizing US treasury bond yields, albeit still hanging closer to multi-month lows, also seems to have collaborated to the buck's bounce back from monthly lows. 

It, however, remains to be seen if the index is able to build on to the recovery momentum or runs through some fresh selling pressure amid rising geopolitical tensions over the US relationship with Russia and North Korea, which continues to fuel bid for government bonds, with the benchmark 10-year yield holding below 2.30% psychological mark.

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Against the backdrop of mounting uncertainty over Trump administration's ability to deliver on promised pro-growth economic policies, jawboning alone could now be seen as a catalyst that might continue to exert further downside pressure on the greenback.

Next on tap would be the US economic docket, featuring the release usual weekly jobless claims data alongside the latest PPI print for March and would be followed by the Prelim UoM Consumer Sentiment, which might provide some fresh impetus during early NA session.