US Dollar pushing higher to fresh 2018 tops near 96.20

  • The index advances further to the proximity of the 96.20 area.
  • US Core CPI rose above estimates 2.4% on a yearly basis.
  • USD supported by rising risk-off sentiment in global markets.

The US Dollar Index (DXY), which manages the greenback vs. a basket of its main competitors, continues its march north of the 96.00 milestone, recording at the same time fresh 13-month peaks.

US Dollar up on risk aversion, data

The index is generating extra upside traction today after US inflation figures noted headline consumer prices rose in line with estimates at annualized 2.9%, while prices stripping food and energy costs gained 2.4% in a year to June, a tad above estimates.

Furthermore, the greenback is deriving support from the increasing weakness in the EM space, particularly after the collapse of the Turkish Lira in response to increasing tensions between US and Turkey. In this regard, President Trump announced an increment in tariffs of US imports of aluminum (20%) and steel (50%).

In the broader picture, geopolitical jitters have been on the rise as well after the US imposed further sanctions against Russia earlier in the week.

US Dollar relevant levels

As of writing the index is gaining 0.65% at 96.24 and a breakout of 96.31 (2018 high Aug.10) would aim for 96.51 (high Jul.5 2017) and then 97.87 (61.8% Fibo of the 2017-2018 drop). On the downside, the next support is located at 95.10 (10-day SMA) seconded by 94.90 (10-day SMA) and finally 94.08 (low Jul.26).