US Dollar moves to fresh tops around 96.50

• The index advances to fresh 2018 peaks in the mid-96.00s.
• Yields of the US 10-year note drop to session lows near 2.85%.
• Turkey, US-China trade spat continues to support the buck.

The persistent risk-off sentiment around the Turkish Lira has been bolstering the up move in the buck to the mid-96.00s when tracked by the US Dollar Index (DXY).

US Dollar up on risk-off mood

The index is up for the third session in a row today, testing levels last seen in June 2017 in the 96.50/55 band on the back of the swelling risk-off sentiment in the global markets.

In fact, the demand for the safe haven currencies has supported the buck as of late following the escalation of the crisis hitting the Turkish currency and which is threatening to spread to the rest of the EM universe.

In addition, unabated discussions on the US-China trade front continues to lend oxygen to the buck, while yields of the US-10 year reference are navigating session low around the 2.85% on sustained demand for safer assets.

US Dollar relevant levels

As of writing the index is gaining 0.17% at 96.48 and a breakout of 96.52 (2018 high Aug.13) would aim for 97.87 (61.8% Fibo of the 2017-2018 drop) and then 99.89 (high May 5 2017). On the downside, the next support is located at 95.34 (10-day SMA) seconded by 94.99 (21-day SMA) and finally 94.08 (low Jul.26).