US Dollar off lows, regains 90.20

• DXY finds support near 90.10.
• Risk-on mood weighs on USD.
• US CPI, retail sales (Wednesday) next of relevance.

After bottoming out in the 90.10 region during early trade, the greenback – in terms of the US Dollar Index (DXY) – has now managed to regain the 90.20/25 band following the opening bell in the Old Continent.

US Dollar focused on US data, risk

The index has started the week on a negative mood after two consecutive weekly advances, all amidst a renewed pick up in the risk appetite trends while volatility has subsided somewhat.

The rebound in the buck is echoing the solid performance in yields of the US 10-year reference, which climbed beyond the 2.90% handle for the first time since January 2014.

Later in the week, investors will look to the release of key US inflation figures measured by the CPI and retail sales for the month of January (Wednesday) in order to further gauge the health of the US economy ahead of the FOMC meeting next month.

On the positioning front, investors scaled back their net short positions in USD to fresh 3-week lows during the week ended on February 6, as per the latest CFTC report.

US Dollar relevant levels

As of writing the index is losing 0.22% at 90.24 facing the immediate support at 88.55 (low Feb.2) seconded by 88.42 (2018 low Jan.25) and finally 86.82 (weekly trend line off 72.70). On the upside, a break above 90.57 (high Feb.8) would target 90.70 (high Jan.22) en route to 90.98 (high Jan.18).