US Dollar firmer, looks to retake 90.00

• DXY recovers the smile on Friday and trader closer to 90.00.
• US 10-year yields around session lows near 2.92%.
• USD stays vigilant on Fedspeak due later in the day.

The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main competitors, is trading on a firm footing on Friday and has the 90.00 handle back on the crosshairs.

US Dollar focused on Fedspeak

The index has recovered the smile at the end of the week, trading on a bid fashion and at shouting distance from the psychological 90.00 milestone. It is worth recalling that sellers appeared above this key level on Wednesday, forcing the buck to recede towards the 89.60 region.

The up move around USD came amidst some softening of yields in the US money markets, where the key 10-year reference is hovering over the 2.92% after climbing to multi-year tops around 2.96% post-FOMC meeting.

In the meantime, DXY stays on track to close the week with gains and is now targeting February’s tops in the proximity of 90.60. Prospects of further tightening by the Federal Reserve appear to have returned as the main catalyst for the price action, although renewed concerns over the ‘twin deficits’ and political uncertainty in the US still linger.

Nothing scheduled in the US calendar today, whereas New York Fed W.Dudley (permanent voter, centrist), Boston Fed E.Rosengren (2019 voter, centrist), Cleveland Fed L.Mester (voter, hawkish) and San Francisco Fed J.Williams (voter, centrist) are all due to speak throughout the day.

US Dollar relevant levels

As of writing the index is up 0.29% at 90.00 and a break above 90.57 (high Feb.8) would aim for 91.00 (high Jan.18) and then 91.13 (55-day sma). On the flip side, the immediate support emerges at 89.53 (10-day sma) followed by 88.44 (low Jan.26) and finally 88.26 (2018 low Feb.16).