US Dollar flirting with highs near 92.80, Fedspeak eyed

• The index resumes the upside and test tops near 92.80.
• US 10-year yields stay sidelined around 2.96%.
• Fedspeak, Powell, US inflation figures expected throughout the week.

The greenback, in terms of the US Dollar Index (DXY), is prolonging the up move at the beginning of the week and is now hovering over the 92.80 region, or daily highs.

US Dollar looks to Fedspeak

The index is adding to Friday’s gains and is now flirting once again with tops in the 92.80 region, while yields of the key US 10-year benchmark stay in a consolidative mode around 2.96% for the time being.

Friday’s Non-farm Payrolls figures disappointed expectations after the US economy created 164K jobs during last month. However, the initial knee-jerk in the index quickly found dip-buyers and helped the buck to close with gains for yet another week.

Furthermore, DXY is up for the fourth consecutive week and trading around the 61.8% Fibo retracement of the sharp November-February drop.

On the positioning front, USD speculative net shorts barely moved in the week to May 1, dropping to 2-week lows as per the latest CFTC report.

Data wise in the US docket today, speeches by Atlanta Fed R.Bostic (voter, centrist), Richmond Fed T.Barkin (voter, centrist), Dallas Fed R.Kaplan (non voter, hawkish) and Chicago Fed C.Evans (2019 voter, dovish).

US Dollar relevant levels

As of writing the index is gaining 0.19% at 92.75 and a breakout of 92.83 (2018 high May 2) would open the door to 93.68 (78.6% Fibo of 95.15-88.25) and then 94.22 (high Dec.12 2017). On the other hand, initial contention emerges at 91.95 (200-day sma) seconded by 91.70 (50% Fibo of 95.15-88.25) and finally 90.85 (21-day sma).