US Dollar upside stalled near 89.60
- The index trades on a better mood near the 89.60 area today.
- Geopolitical risks from US-Syria-Russia conflict keep ruling the sentiment.
- US Export/Import Prices and Initial Claims next on tap in the US docket.
The greenback, tracked by the US Dollar Index (DXY), is looking to extend the rebound from 2-week lows in the 89.40/35 band recorded on Wednesday.
US Dollar focused on risk trends
The index is managing to revert four consecutive daily pullbacks amidst alternating risk appetite trends and heightened effervescence regarding the likeliness of a US military strike in Syria.
The greenback stayed apathetic following the release of the FOMC minutes on Wednesday, where the Committee sees downside risks stemming from the policy trade while some members advocated for interest rates to move above the natural rate in the next years in order to prevent the economy to overheat. In addition, the Federal Reserve will continue with the reduction of its balance sheet despite concerns over USD liquidity.
In the US data space, weekly Initial Claims are due next ahead of Export/Import Prices for the month of March and the speech by Minneapolis Fed N.Kashkari (non voter, dovish).
US Dollar relevant levels
As of writing the index is up 0.06% at 89.58 and a break above 90.60 (high Apr.6) would target 90.89 (38.2% Fibo of 95.15-88.25) en route to 90.93 (high Mar.1). On the other hand, immediate contention emerges at 89.36 (low Apr.11) seconded by 88.94 (low Mar.27) and then 88.25 (2018 low Feb.16).