US Dollar clings to gains above 93.00

• DXY finds support near the 93.00 handle.
• US 10-year yields retreat from highs.
• USD remains vulnerable on uncertain US politics.

The greenback, tracked by the US Dollar Index (DXY), seems to have recovered the smile at the end of the week and is now looking to extend the positive mood above the 93.00 limestone.

US Dollar supported near 93.00

After three consecutive sessions with losses, the index is now attempting a more sustainable rebound from recent lows in the 93.00 neighbouhood.

The up tick in the buck has been accompanied by a rebound in yields of the US 10-year reference, coming up from weekly lows in sub-2.32% levels to the current vicinity of the 2.35% handle.

The lack of headlines from the US tax reforms in combination with the shortened trading week due to the Thanksgiving Day holiday played against the greenback and any attempt of recovery.

In this regard, it is worth mentioning that the House GOP passed its tax reform bill, while the Senate’s version is expected to be considered after Thanksgiving. Both bills should reconcile at a later stage before sending it to President Trump for signature.

In the US data space, advanced Markit’s manufacturing/services PMI are only due later in the NA session.

US Dollar relevant levels

As of writing the index is gaining 0.05% at 93.17 and a breakdown of 93.08 (low Nov.23) would aim for 92.75 (low Oct.13) and finally 91.53 (low Sep.20). On the other hand, the initial hurdle lines up at 93.51 (55-day sma) seconded by 93.73 (10-day sma) and then 94.17 (low Nov.21).