US Dollar firmer near 90.60, 5-week tops

• DXY tested the vicinity of 90.60 on Wednesday, fresh 5-week peaks.
• US 10-year yields meandering the area of daily lows around 2.88%.
• US Q4 GDP figures matched forecasts, Pending Home Sales contracted more than expected.

The US Dollar Index (DXY) – which gauges the buck vs. its main competitors – remain on a strong footing today and has briefly tested the 90.60 area, or fresh multi-week tops.

US Dollar bid above 90.00

The index is extending the weekly correction lower, gathering extra traction in response to month-end flows, softer tone around EUR and JPY and a better perspective following Tuesday’s congressional testimony by Fed’s J.Powell.

The buck also found extra support in the latest results from the CB’s consumer confidence (Tuesday) and today’s preliminary GDP figures for the last three moths of 2017, showing the economy is seen expanding 2.5% on a yearly basis.

The up move in the buck comes as opposed to the recent performance in yields of the key US 10-year note, currently meandering the 2.88% area, or session lows.

Looking ahead, US inflation figures tracked by the PCE are due tomorrow seconded by initial claims, personal income/spending, the key ISM manufacturing and another testimony by Chief Powell, this time before the Senate Banking Committee.

US Dollar relevant levels

As of writing the index is up 0.33% at 90.67 with the next hurdle at 90.94 (55-day sma) followed by 91.00 (high Jan.18) and finally 92.17 (21-week sma). On the other hand, a breakdown of 89.67 (10-day sma) would aim for 89.51 (low Feb.26) and then 88.44 (low Jan.26).