US Dollar treading water around 90.00 ahead of ISM
- DXY clings to daily gains in the 90.00 area on Monday.
- US 10-year yields bounce off lows near 2.74%.
- US ISM Manufacturing next of relevance later in the session.
The greenback, when tracked by the US Dollar Index, is trading within a tight range at the beginning of the week around the psychological 90.00 milestone.
US Dollar focused on ISM
The index sticks to the boundaries of the key 90.00 handle on Monday following last week’s strong rebound from lows in sub-89.00 levels.
Looking at the broader picture, DXY remains sidelined since late February with clear support in the 89.00 neighbourhood, while the mid-90.00s keeps offering a tough resistance for the time being.
The recent recovery in the buck has been decoupled from the performance of yields in the key US 10-year note, which dropped to fresh multi-week lows in the 2.74% region, where are now trying to base.
News from the speculative community noted USD net shorts climbed to the highest level in the last 4 weeks in the week to March 27, as per the latest CFTC report.
Later today, the US ISM Manufacturing is expected to ease a tad to 60.1 for the month of March. Further releases will see Markit’s Manufacturing gauge as well.
US Dollar relevant levels
As of writing the index is down 0.10% at 89.90 facing immediate contention at 88.94 (low Mar.27) seconded by 88.44 (low Jan.26) and then 88.25 (2018 low Feb.16). On the other hand, a break above 90.18 (high Mar.29) would aim for 90.44 (high Mar.20) and finally 90.93 (high Mar.1).