US Dollar clings to gains near 92.00, US retail sales eyed

The US Dollar Index (DXY), which tracks the buck vs. its main competitors, is now posting marginal gains just above the 92.00 handle.

US Dollar now looks to data

The index is recovering some ground on Friday following yesterday’s pullback and despite the economy showed better-than-expected CPI figures during August.

DXY quickly climbed to fresh tops beyond 92.60 in the wake of the release, all in tandem with a rebound in yields of the US 10-year benchmark to levels above 2.22%. However, and without any follow through, sellers stepped in and drove the greenback back to the negative territory.

Some decent contention appeared in the 92.00 neighbourhood nonetheless, while market chatter around Trump’s tax reform and an up tick in the probability of a rate hike by the Fed at the December meeting (as per CME Group’s FedWatch tool) somewhat limiting the downside for the time being.

In the US calendar, August’s retail sales are next on tap seconded by the advanced gauge of the consumer sentiment for the current month.

US Dollar relevant levels

As of writing the index is gaining 0.04% at 92.08 and a breakout of 92.64 (high Sep.14) would aim for 93.35 (low Aug.31) and finally 93.63 (55-day sma). On the other hand, the immediate support emerges at 91.99 (low Sep.14/15) seconded by 91.71 (low Sep.13) and then 91.01 (2017 low Sep.8).