US Dollar picks up pace to the 91.20 area ahead of data

• The index keeps the narrow range above the 91.00 handle on Thursday.
• US 10-year yields keep consolidating above the critical 3.0% level.
• US Goods Trade Balance, Initial Claims, Durable Goods Orders next on tap.

The US Dollar Index (DXY), which gauges the buck vs. its main rivals, stays on the right footing so far this week and is now attempting to stabilize above 91.00 the figure.

US Dollar looks to ECB, data, yields

The ongoing up move in the index has been largely in tandem with the strong pick up in yields of the US 10-year reference, which advanced beyond the critical 3.0% handle recording at the same time new multi-year peaks.

The up move in yields has been in response to market participants re-shifting their focus to monetary policy in light of diminishing geopolitical concerns and easing tensions on the US-China trade conflict.

Later in the session, the ECB will hold its monetary policy meeting, where consensus is pointing to a dovish message from the central bank’s statement and the press conference by President Draghi. An outcome in line with the generalized markets’ view could add extra legs to the buck’s rally and help it consolidate above the 91.00 milestone.

In the US data space, Goods Trade Balance and Durable Goods Orders for the month of March are due later along with the weekly report on the labour market.

US Dollar relevant levels

As of writing the index is up 0.01% at 91.27 and a break above 91.70 (50% Fibo of 95.15-88.25) would aim for 92.00 (200-day sma) and finally 92.52 (61.8% Fibo of 95.15-88.25). On the other hand, the next support lines up at 90.89 (38.2% Fibo of 95.15-88.25) followed by 90.29 (10-day sma) and then 89.95 (high Apr.20).