DXY inter-markets: USD recovering the smile

The US Dollar Index (DXY) – which gauges the buck vs. its main rivals – has regained the critical 100.00 handle today, advancing even to fresh multi-day tops in the vicinity of 100.70, just to move some pips south afterwards.

Yields from US money markets have revived today after bottoming out in levels last seen 3 weeks ago, although they’re still navigating within the negative territory for the second week in a row. That said, for the Dollar’s up move to be stronger and more sustainable, yields should accompany the move with a more solid performance.

On another front, Trump’s comments on the ‘strong’ USD seem already digested by both the buck and market participants, although the new greenback’s highly dependence on ‘Trumponomics’ will be a potent catalyst in the months to come.

Chart-wise, the initial support emerges at last week’s lows around 99.20, while the constructive outlook should remain well and sound while above the 9-month support line (currently around 97.30). This area also appears reinforced by the critical 200-day sma near 97.50. On the upside, recent highs just above 101.00 the figure should offer some interim resistance ahead of the 55-day sma near 101.40.