US Dollar approaching 93.60 on Trump rumours

The buying interest around the greenback is picking up extra pace today, now lifting the US Dollar Index (DXY) to fresh daily highs in the mid-93.00s.

US Dollar reverts yesterday’s pullback

The index is moving higher today amidst a generalized lack of volatility and low volume, while cautiousness is expected to grow bigger ahead of the Jackson Hole Symposium in the second half of the week.

In the meantime, DXY has fully reverted Monday’s sharp pullback to fresh multi-lows in sub-93.00 levels, all on the back of fresh chatter about the likeliness that Trump could be re-assessing his tax reform plans.

The up move in the greenback is also accompanied by a better tone in US money markets, pushing the yields of the 10-year benchmark to the boundaries of the 2.21% handle.

Nothing noteworthy in the US docket today, while sentiment, the broader risk appetite trends and headlines from the White House are poised to drive the price action in the FX markets.

US Dollar relevant levels

As of writing the index is gaining 0.50% at 93.53 and a breakout of 94.14 (high Aug.16) would aim for 95.13 (55-day sma) and finally 95.21 (23.6% Fibo of the 2017 drop). On the flip side, the next support emerges at 93.00 (low Aug.21) seconded by 92.93 (low Aug.11) and then 92.55 (2017 low Aug.2).