The greenback reverses Thursday’s pullback and looks to extend the weekly recovery above the 90.00 yardsticks when tracked by the US Dollar Index (DXY). The index manages to regain the smile and keep business around the key 90.00 neighborhood at the end of the week, leaving behind at the same time Thursday’s pullback. The better mood in the dollar comes in response to the recovery in US yields and speculations ahead of President Biden’s announcement of a multi-trillion budget (scheduled for later in the NA session). In fact, yields of the key US 10-year reference extend the move further north of the 1.60% mark following weekly lows in the 1.55% area.
The index remains under pressure despite regaining the 90.00 neighborhood in the past hours. Looking at the broader scenario, the negative stance on the dollar seems to prevail among market participants, as speculation of higher inflation in the medium-term now looks to have lost momentum and the US economic outperformance narrative seems almost fully priced in. Now, the index is gaining 0.14% at 90.13 and a breakout of 90.90 (weekly high May 11) would open the door to 91.08 (100-day SMA) and finally 91.43 (monthly high May 5). On the flip side, the next support is line up at 89.53 (monthly low May 25) followed by 89.20 (2021 low Jan.6) and then 88.94 (monthly low March 2018). 
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Free TrialDXY looks around the 90.00 level on Friday
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The greenback reverses Thursday’s pullback and looks to extend the weekly recovery above the 90.00 yardsticks when tracked by the US Dollar Index (DXY). The index manages to regain the smile and keep business around the key 90.00 neighborhood at the end of the week, leaving behind at the same time Thursday’s pullback. The better mood in the dollar comes in response to the recovery in US yields and speculations ahead of President Biden’s announcement of a multi-trillion budget (scheduled for later in the NA session). In fact, yields of the key US 10-year reference extend the move further north of the 1.60% mark following weekly lows in the 1.55% area.
The index remains under pressure despite regaining the 90.00 neighborhood in the past hours. Looking at the broader scenario, the negative stance on the dollar seems to prevail among market participants, as speculation of higher inflation in the medium-term now looks to have lost momentum and the US economic outperformance narrative seems almost fully priced in. Now, the index is gaining 0.14% at 90.13 and a breakout of 90.90 (weekly high May 11) would open the door to 91.08 (100-day SMA) and finally 91.43 (monthly high May 5). On the flip side, the next support is line up at 89.53 (monthly low May 25) followed by 89.20 (2021 low Jan.6) and then 88.94 (monthly low March 2018).