US Dollar targets recent peaks around 90.30

• The greenback is accelerating the recovery to the 90.30 region.
• US 10-year yields poking highs just below the 2.90% handle.
• Fed’s rate hike, ‘dots plot’ in centre stage as FOMC meeting looms.

The US Dollar Index (DXY) – which gauges the greenback vs. its main competitors – is extending the daily recovery to fresh tops in the vicinity of the 90.30 region.

US Dollar focused on FOMC

The index has not only reverted today’s initial negative tone, but it is also challenging recent peaks in the 90.30/40 band, opening the door for a potential test of the more relevant hurdle near 90.90 (2-month tops and 38.2% Fibo of 95.15-88.25).

The up move in the buck has been in tandem with the better performance of yields in the key US 10-year note, which have regained the proximity of the 2.90% milestone and at the same time aims for a visit to the psychological figure at 3.00%, particularly in light of the likely move on rates by the Federal Reserve at its meeting tomorrow.

Nothing on the US docket today, leaving all the attention to the Fed and the updated projections (‘dots plot’) due tomorrow. In addition, investors will closely follow the first press conference by Chief J.Powell, looking for any hints on the prospects of further tightening of the monetary conditions in the next months.

US Dollar relevant levels

As of writing the index is gaining 0.31% at 90.20 facing the next up barrier at 90.38 (high Mar.16) followed by 90.57 (high Feb.8) and finally 90.93 (high Mar.1). on the other hand, a break below 89.76 (low Mar.19) would open the door to 89.56 (low Mar.14) and then 89.41 (low Mar.7).