US Dollar rebounds from multi-month lows, will it sustain?

The greenback selling pressure seems to have abated for the time being, with the key US Dollar Index (DXY) bouncing off 9-month lows and is currently hovering around the 95.40-50 region.

The prospect for shifts in monetary policy stance by the European Central Bank and the Bank of England continued weighing on the buck through early Asian session on Friday. 

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The recent comment by the ECB President Mario Draghi, indicating that the central bank could soon start to unwind its quantitative easing program drove the EUR/USD pair to 14-month highs. 

This coupled with BOE Governor Mark Carney's remarks that some removal of monetary stimulus is likely to become necessary provided a boost to the GBP/USD pair, which eventually dragged DXY to its lowest level since Sept. 2016. 

Even an upward revision of the first-quarter US economic growth, released on Thursday, did little to provide any immediate respite for the buck. 

However, a continuous upsurge in the US Treasury bond yields, with the 10-yr benchmark yield holding near multi-week highs seems to have extended some support on the last trading day of the week.

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Investors now look forward to a string of US macro data, which includes - Core PCE Price Index, Personal income/spending data, Chicago PMI and Revised UoM Consumer Sentiment Index, for some fresh impetus later during the NA session.