US Dollar flirting with highs near 93.70 ahead of Fedspeak, data

The US Dollar Index (DXY) – which gauges the greenback vs. a basket of its main competitors – remains on a firm note so far this week and is now challenging the 93.60/70 band, or 6-week tops.

US Dollar bid on Trump’s tax reform plans, yields

The index is posting its fourth consecutive advance so far this week, retaking the mid-93.00s and always underpinned by the sharp rebound of yields in the US money markets, where the 10-year reference has climbed to fresh multi-week highs above 2.35%.

USD keeps the bid tone well and sound today after Republicans unveiled further details on the proposed tax reform plans on Wednesday, which concentrates in a significant cut in personal and corporate tax rates.

Data wise in the US docket, trade balance figures are next on tap followed by initial claims and the third revision of US Q2 GDP.

Additionally, FOMC’s members S.Fischer, KC Fed E.George (2019 voter, hawkish) and Atlanta Fed R.Bostic (2018 voter, centrist) are also due to speak.

US Dollar relevant levels

As of writing the index is gaining 0.04% at 93.31 and a break above 93.66 (high Sep.28) would open the door to 94.03 (23.6% Fibo of the 2017 drop) and finally 94.14 (high Aug.16). On the other hand, the immediate support lines up at 93.07 (55-day sma) seconded by 91.52 (10-day sma) and finally 92.35 (21-day sma).