US Dollar under pressure around 93.00 ahead of US CPI

• The index remains parked around the 93.00 handle today.
• US 10-year yields return to the 3.0% level after yesterday’s tops.
• US inflation figures tracked by the CPI will set the tone for the buck later.

The US Dollar Index (DXY), which tracks the buck vs. its main rivals, is now gyrating over the critical 93.00 handle, coming down from recent peaks in the 93.45/40 band.

US Dollar now looks to US docket

The index is now trading on the defensive after four consecutive daily advances, including fresh 2018 tops in the 93.40 region seen on Wednesday.

The correction lower in the buck comes along a drop in yields of the US 10-year note to the 3.0% area after clinching tops beyond 3.01% yesterday. In addition, some profit taking keeps weighing on the greenback along with a pick up in the demand for EUR and GBP after testing some critical technical levels.

Looking ahead, the greenback should stay under pressure in light of the upcoming publication of US inflation figures gauged by the CPI for the month of April along with the weekly report on Initial Claims.

US Dollar relevant levels

As of writing the index is retreating 0.12% at 93.00 and a breakdown of 92.53 (10-day sma) would expose 91.96 (200-day sma) and finally 91.70 (50% Fibo of 95.15-88.25). On the upside, the initial barrier aligns at 93.42 (2018 high May 9) followed by 93.68 (78.6% Fibo of 95.15-88.25) and then 94.22 (high Dec.12 2017).