US Dollar tumbles to lows near 89.50

• A bout of selling pressure drags the index to lows near 89.50.
• US 10-year yields flirting with tops near 2.89%, 4-week peaks.
• US Initial Claims, Philly Fed index next of relevance.

The greenback, gauged by the US Dollar Index (DXY), is trading on the defensive during the second half of the week around the mid-89.00s.

US Dollar looks to data, risk

After two consecutive daily advances, the index has now given away some ground and returns to the 89.50 region, as risk-on sentiment appears to be taking a breather.

There is no relevant catalyst for the buck’s down move, as global markets remain largely in a consolidative mood against the backdrop of absent fresh headlines on the Middle East and the US-China trade conflict.

In the US data space, the usual weekly report on the labour market is next on tap, seconded by the always relevant Philly Fed manufacturing gauge and speeches by FOMC’s dovish member L.Brainard and Cleveland Fed L.Mester (voter, hawkish).

US Dollar relevant levels

As of writing the index is losing 0.08% at 89.56 and a breakdown of 89.23 (low Apr.17) would open the door to 88.94 (low Mar.27) and then 88.25 (2018 low Feb.16). On the upside, the next hurdle aligns at 89.95 (high Apr.12) followed by 90.60 (high Apr.6) and finally 90.89 (38.2% Fibo of 95.15-88.25).