US Dollar up and down around 92.60 ahead of US data

• The index fades the earlier spike to the 92.80/85 band.
• US 10-year yields rise above the 3.0% level, fresh tops.
• US Retail Sales for the month of April next of relevance.

The US Dollar Index (DXY), which gauges the buck vs. a basket of its main rival, has faded the initial spike to the 92.80/85 band, or session tops, and now returns to the 92.70 region.

US Dollar now looks to US docket

The pair managed to bounce off yesterday’s lows and climb to the 92.80 region during early trade on the back of a better tone around US yields, although the up move lost traction when European desks opened on Tuesday.

In fact, yields of the key US 10-year reference surpassed and so far stay above the critical 3.0% level today, at the same time trading at shouting distance from multi-year peaks seen in late April (around 3.035%).

Later in the NA session, the greenback should stay under pressure in light of the publication of April’s Retail Sales. Further releases will see Business Inventories for the month of March, the NAHB index, TIC Flows and the speech by San Francisco Fed J.Williams (voter, dovish).

US Dollar relevant levels

As of writing the index is up 0.03% at 92.71 facing the next resistance at 92.81 (high May 15) followed by 93.42 (2018 high May 8) and then 94.22 (high Dec.11 2017). On the flip side, a breakdown of 92.43 (23.6% Fibo of 89.23-93.42) would open the door to 92.25 (low May 13) and finally 91.95 (200-day sma).