US Dollar targets session tops closer to 90.00

- The index bounces off lows and is now testing tops in the 89.90 area.

- Dovish ECB gave legs to the recovery in the buck so far today.

- Trump’s press conference on tariffs due next ahead of Friday’s payrolls.

The greenback, in terms of the US Dollar Index (DXY), managed to rebound from daily lows in the vicinity of 88.40 and is now challenging the upper end of the range closer to the critical 90.00 handle.

US Dollar now looks to Trump, payrolls

The somewhat dovish tone from President Mario Draghi at his press conference following the steady stance from the European Central Bank gave much needed oxygen to the buck and is now pushing DXY to daily tops around 89.90.

The greenback has reverted the initial negative tone although it is expected to come under renewed pressure in light of Trump’s press conference on tariffs, scheduled for the European evening/night.

The rebound in DXY comes as opposed to the performance of yields in the US 10-year note, which are now meandering daily lows around 2.85%.

In the US data space, Challenger Job Cuts contracted at an annualized 4.3% while Initial Claims rose to 231K WoW, taking the 4-Week Average to 222.50K from 220.50K.

US Dollar relevant levels

As of writing the index is gaining 0.36% at 89.92 facing the next hurdle at 90.57 (high Feb.8) seconded by 90.93 (high Mar.1) and finally 91.00 (high Jan.18). On the downside, a break below 89.43 (low Mar.7) would open the door to 88.44 (low Jan.26) and finally 88.25 (2018 low Feb.16).