US Dollar hovering over daily peaks near 90.40

• The index gathered extra traction on Kudlow comments on US-China.
• US 10-year yields retreat from daily tops near 2.82%.
• US trade deficit the largest since financial crisis at $57.6 billion in February.

The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main rival currencies, has managed to gather further steam and is now recording fresh peaks in the 90.40 region.

US Dollar bid around 90.40

The index picked up extra pace after Trump’s Advisor L.Kudlow showed confidence that US and China could come to an agreement ‘over a period of time’, adding to the already optimistic mood in the risk-associated space. In addition, Kudlow stressed that any second phase of the tax plan is unlikely to be happen soon.

In the US docket, February’s trade deficit came in at $57.6 billion, the largest since the financial crisis, while Initial Claims rose at a weekly 242K, more than initially estimated. Earlier in the session, Challenger Job Cuts rose 39.4% on a yearly basis, or 60.4K.

In the meantime, DXY is up for the second consecutive week so far, challenging at the same time fresh 3-week tops in the 90.40/45 band.

US Dollar relevant levels

As of writing the index is up 0.20% at 90.32 and a break above 90.44 (high Mar.20) would target 90.93 (high Mar.1) and finally 91.00 (high Jan.18). On the flip side, immediate contention lies at 88.94 (low Mar.27) seconded by 88.44 (low Jan.26) and then 88.25 (2018 low Feb.16).