US Dollar around 92.40 ahead of US CPI

The greenback, in terms of the US Dollar Index (DXY), is alternating gains with losses on Thursday around the 92.40 region ahead of key US inflation figures expected later in the session.

US Dollar focused on Trump, CPI

The index is now giving away part of yesterday’s strong gains to the 92.50 area, receding to the 92.40/35 band following the European open today.

A better tone in US yields lifted the US 10-year reference to fresh tops in the boundaries of 2.20% and DXY to multi-day peaks on Wednesday, all in response to increasing optimism regarding a potential announcement by the Trump administration regarding the so long-waited tax reform plan.

In the meantime, the greenback is looking to consolidate in the upper end of the recent range ahead of key US CPI figures for the month of August. Further releases include the usual weekly report on the labour market.

US Dollar relevant levels

As of writing the index is retreating 0.04% at 92.35 and a breakout of 92.52 (high Sep.13) would aim for 92.59 (21-day sma) and finally 93.35 (low Aug.31). On the other hand, the immediate support emerges at 92.16 (10-day sma) seconded by 91.71 (low Sep.13) and then 91.01 (2017 low Sep.8).