US Dollar volatile, bounces off lows to clinch highs near 95.90

The US Dollar Index – which tracks the buck vs. its main rivals – has now gathered fresh steam and is testing daily highs in the 95.85/90 band.

US Dollar rebounds from 95.50

After testing lows near 95.50 post-payrolls, the index managed to pick up a fresh wave of buying interest and is now moving to the area of 95.90, or session tops.

June’s non-farm payrolls saw the economy adding more jobs than initially forecasted – 222K – although inflation pressures via wage growth stayed somewhat steady, rising below consensus at a monthly 0.2% (2.5% YoY) and somewhat eclipsing the auspicious job creation. Also on the opaque side, the unemployment rate ticked higher to 4.4% from 4.3%.

Despite the mixed sensations following the report, there is no doubt of the solidness of the US labour market, which at the same time allows some pricing of another rate hike later in the year in spite of some (rising?) doubts among investors.

The up move stays underpinned by the solid performance of US yields, particularly the 10-year reference, which is closer to the 2.40% level.

US Dollar relevant levels

The index is gaining 0.30% at 95.87 facing the next up barrier at 95.90 (10-day sma) followed by 96.25 (high Jul.5) and finally 96.32 (high Jun.28). On the other hand, a breach of 95.56 (low Jul.6) would open the door to 95.22 (2017 low Jun.30) and then 94.95 (low Sep.22 2016).