US Dollar clings to gains near 92.70

• The index fades the spike to daily highs in the 92.85/90 band.
• US 10-year yields slip back below the 2.96% handle.
• Advanced US Consumer Sentiment for the month of May next of note.

The greenback, in terms of the US Dollar Index (DXY), is now alternating gains and losses around the 92.70 region, coming down from earlier tops in the 92.85/90 band.

US Dollar looks to data

After two consecutive daily declines, the index is now showing some lack of upside momentum, as market participants continue to adjust to the recently published US inflation figures tracked by the CPI, which came in below initial estimates during last month.

Adding to the recent softness in the buck, yields of the key US 10-year benchmark have eased from tops beyond the 3.0% level and appear sidelined in the 2.96% neighbourhood for the time being.

The down move, in the meantime, has been also fuelled by a profit-taking mood among investors in light of the recent strong rally.

Later in the US data space, Export/Import Price index is due seconded by the speech by San Francisco Fed J.Williams (voter, centrist) and the preliminary reading of US Consumer Sentiment for the current month.

US Dollar relevant levels

As of writing the index is gaining 0.05% at 92.76 and a breakout of 92.97 (2018 high May 7) would open the door to 93.68 (78.6% Fibo of 95.15-88.25) and then 94.22 (high Dec.12 2017). On the other hand, initial contention emerges at 92.62 (10-day sma) seconded by 92.52 (61.8% Fibo of 95.15-88.25).