US Dollar off highs, back around 93.40/50

• The index failed around 93.70, returns to the 93.40 area.
• US 10-year yields remain consolidative around 2.97%.
• US CPI, Trump-Kim meeting next of relevance tomorrow.

The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rivals, has returned to the negative territory in the 93.45/40 band at the beginning of the week.

US Dollar looks to US data, risk trends, Trump

The index came under renewed selling pressure after failing to advance further north of session tops near 93.70 today, returning to the vicinity of 93.40 amidst risk-on trade and lack of direction in US yields.

In fact, key yields of the US 10-year note remain in a consolidative-mode around 2.97% so far today, all against the backdrop of rising cautiousness in light of the meeting between President Trump and North Korea’s Kim-Jong un.

In addition, US inflation figures tracked by the CPI for the month of May will be also published, preceding the key FOMC meeting on Wednesday. It is worth mentioning that the Committee is seen hiking rates by 25 bps, although another revision of the ‘dots-plot’ will also grab extra attention.

Further US data releases later in the week will see Retail Sales for the month of May, the NY Empire State index and June’s advanced print of the U-Mich index.

US Dollar relevant levels

As of writing the index is losing 0.08% at 93.48 and a breakdown of 93.22 (low Jun.7) would aim for 92.80 (38.2% Fibo of the April-June up move) and then 92.24 (low May 13). On the upside, the initial up barrier emerges at 93.75 (21-day sma) followed by 93.91 921-day sma) and finally 94.45 (high May 31).