US Dollar bid around 96.60, Comey eyed

The greenback – gauged by the US Dollar Index (DXY) – is trading on a firm note on Wednesday around the 96.60 region, looking to recover from yesterday’s pullback.

US Dollar still close to YTD lows

After reaching fresh 2017 lows in the mid-96.00s on Tuesday, the index seems to have found some dip buyers and regained some traction around the current 96.60/70 band.

Yields in the US money markets, particularly the 10-year benchmark, stay in centre stage after recording fresh multi-month lows yesterday. The recent down move in US yields has been justified by increasing scepticism on the ability of the Trump’s administration to deliver its promises of fiscal stimulus.

Furthermore on this matter, recent news cited China could be mulling the idea of ramping up its purchases of Treasuries after being a significant seller in 2015 and 2016.

In the US data space, the weekly report on US crude oil inventories by the EIA is only due later in the NA session ahead of tomorrow’s key testimony by former FBI Director James Comey before the Senate Intelligence Committee.

US Dollar relevant levels

The index is up 0.02% at 96.52 and a breakout of 96.75 (high Jun.6) would open the door to 97.27 (high Jun.1) and then 97.43 (20-day sma). On the flip side, the immediate support aligns at 96.47 (2017 low Jun.6) followed by 95.91 (low Nov.9 2016) and then 94.95 (low Sep.22 2016).