US Dollar looks to regain 89.60, Fedspeak eyed

• The index extends the recovery from lows in the 89.20 area.
• US 10-year yields slightly off tops below 2.84%.
• Fedspeak and Fed’s Beige Book of relevance later in the session.

The greenback, in terms of the US Dollar Index (DXY), is trading on a better mood on Wednesday and looking to prolong the recovery around the 89.55/60 band.

US Dollar attention to Fedspeak

The index is clinching its second consecutive session in the positive territory so far today, coming up from multi-week lows in the 89.25/20 band seen on Tuesday.

The persistent risk-on trade keeps benefiting the buck via a higher USD/JPY on rising outflows from the safe haven JPY. In addition, news of a secret meeting between Trump’s CIA Head and NK’s Kim Jong-un has added to the buoyant mood around the risk-associated complex.

Ahead in the day, the Fed will publish its Beige Book, where a continuation of the moderate regional growth is expected. Further out, NY Fed W.Dudley (permanent voter, centrist) will make opening remarks at Community Bank Conference and will speak on Economic Outlook, seconded by FOMC’s R.Quarles.

Later in the day, the DoE will report on the weekly variation of US crude oil inventories.

US Dollar relevant levels

As of writing the index is gaining 0.12% at 89.61 and a breakout of 89.95 (high Apr.12) would aim for 90.60 (high Apr.6) and finally 90.89 (38.2% Fibo of 95.15-88.25). On the other hand, the next support emerges at 89.23 (low Apr.17) seconded by 88.94 (low Mar.27) and then 88.25 (2018 low Feb.16).