US Dollar firmer, 90.00 is around the corner

• The index accelerates the upside to the vicinity of the 90.00 handle.
• US 10-year yields rebound to the boundaries of 2.82%.
• US Export/Import Prices came in mixed for the month of March.

The US Dollar Index (DXY), which gauges the buck vs. its main competitors, is intensifying the upside on Thursday and now eyes the critical 90.00 barrier.

US Dollar bolstered by risk-on trade

The index is reverting the negative sentiment that prevailed during the first half of the week in response to diminishing concerns over the conflict involving Russia, the US and Syria. The wave of risk-on sentiment motivated a strong recovery in USD/JPY, thus lending fresh legs to the buck.

In addition, somewhat hawkish (not dovish at least) tone from the FOMC minutes on Wednesday attracted some fresh buyers after the index bottomed out in fresh 2-week lows around 89.40 yesterday.

In the US data space, investors largely ignored the mixed tone from Export/Import Prices, while weekly Initial Claims missed consensus.

US Dollar relevant levels

As of writing the index is up 0.47% at 89.94 and a break above 90.60 (high Apr.6) would target 90.89 (38.2% Fibo of 95.15-88.25) en route to 90.93 (high Mar.1). On the other hand, immediate contention emerges at 89.36 (low Apr.11) seconded by 88.94 (low Mar.27) and then 88.25 (2018 low Feb.16).