US Dollar finds support near 89.40 ahead of US CPI
- DXY dropped to 89.40, fresh lows.
- US 10-year yields rebound from lows, around 2.82%.
- US CPI, retail sales in the limelight later.
The greenback, in terms of the US Dollar Index (DXY), remains on the defensive so far this week and is now staging a moderate rebound from earlier lows in the 89.40 area.
US Dollar attention to US docket
The index is trading in the negative territory since Monday, as the risk sentiment in the global markets remains unabated for the time being.
USD has managed to find dip-buyers in the 89.40 area, or fresh weekly lows, echoing the bounce in yields of the key US 10-year note, which briefly tested the 2.80% neighbourhood.
Further direction in the buck should hinge on today’s releases in the US calendar, where inflation figures measured by the CPI and January’s retail sales are in the limelight. Consensus expects US headline consumer prices to have risen at an annualized 1.9%, while retail sales are seen expanding 0.2% MoM.
US Dollar relevant levels
As of writing the index is losing 0.25% at 89.50 facing the immediate support at 88.55 (low Feb.2) seconded by 88.42 (2018 low Jan.25) and finally 86.85 (weekly trend line off 72.70). On the upside, a break above 90.57 (high Feb.8) would target 90.70 (high Jan.22) en route to 90.98 (high Jan.18).