US Dollar clings to gains near 93.60 on Trump-Kim meeting
- The index keeps the positive tone today in the 93.70/80 band.
- Yields of the US 10-year note rebounds from 2.95% level.
- Positive Trump-Kim meeting keeps bolstering the greenback.
The greenback, in terms of the US Dollar Index (DXY), is extending the upbeat momentum during the first half of the week and trades in the 93.75/80 band.
US Dollar looks to Trump, US CPI
The index is up for the third session in a row, reverting the recent negative mood and navigating the upper end of the recent range around 93.80/70 after climbing as high as the 93.90 region earlier in the session.
The upbeat sentiment around the buck has been sustained by the auspicious meeting between President Trump and North Korean leader Kim Jong-un in Singapore, as both leaders pledged to aim towards complete denuclearization.
In addition, yields of the key US 10-year reference are prolonging the sideline theme so far this week between 2.95% and 2.97%, as investors stay cautious ahead of the Committee’s revised ‘dots-plot’ expected tomorrow.
Later in the day, the greenback should remain under pressure in light of the publication of US inflation figures gauged by the CPI for the month of May, ahead of the key FOMC meeting due tomorrow.
US Dollar relevant levels
As of writing the index is up 0.01% at 93.60 facing the next hurdle at 93.90 (high Jun.12) followed by 94.32 (high Jun.4) and finally 94.45 (high May 31). On the flip side, a breakdown of 93.21 (low Jun.7) would aim for 92.80 (38.2% Fibo of the April-June up move) and then 92.24 (low May 13).