Dollar Index Wednesday's biggest gainer

• DXY the biggest gainer of the currencies in Wednesday's action.
• Even the Yen lost ground as flight flows are reduced today.

The US Dollar Index (DXY) finishes off Wednesday's trading after a stellar performance, extending Tuesday's rally and climbing into the 89.75 handle.

Dollar up on a confluence of factors

The DXY isn't being propped up by any particular incidence, but buying presence is strong, and even the Yen gave up ground against the Greenback to trade back into March's highs.

Gold got crushed by the advancing Dollar, falling 1.4 percent on the day, and equities were undecided with tech stocks leading indexes lower as the crunch continues from Facebook's recent bungling of user's private data, while the bond yield curve also flattened further, with the 2-year note at 2.282 percent, the 10-year unchanged, and the 30-year yield sinking to 3.012 percent.

US GDP figures also came in much better than expected, printing at 2.9% versus the forecast 2.7% and previous reading of 2.6%. This is the third reading of 4th quarter GDP, so the immediate impact was minimal, but it certainly supports the DXY.

Further boosting the US Dollar is easing geopolitical tensions, as North Korea, China, and the US begin to open talks, and the ongoing tariff spat between the US and China appears to be cooling down as both parties show a willingness to negotiate.

DXY Levels to watch

The Greenback has been bid favourably this week, but the US Dollar is still hanging in a precarious position, having been lifted directly into a heavy resistance zone, with barriers at last week's turnaround area near 89.95, and the peak that the Dollar initially fell off of in early March at 90.48, while a return lower could see support at yesterday's high of 89.23 and the week's low at 88.55.