US Dollar clings to gains around 89.50

• The index keeps the positive ground in the mid-89.00s so far.
• The bullish attempt in DXY run out of steam in the 89.80 region.
• US Fedspeak and Fed’s Beige Book in the limelight later.

The US Dollar Index (DXY0, which measures the buck vs. its main competitors, has faded the initial spike to the 89.80 and is now meandering in the 89.50 area.

US Dollar looks to risk, Fed

The index has eroded most of the initial gains and has now returned to the 89.50 region, all amidst a spike in yields of the key US 10-year yields to levels above the 2.85% handle, or session tops.

In the meantime, DXY is looking to add to Tuesday’s gains after finding strong support in the 89.25/20 band, or multi-week lows seen yesterday.

In the data space, the Fed’s Beige Book is next on tap along with the EIA’s weekly report on US crude oil stockpiles and the speech by FOMC’s R.Quarles.

US Dollar relevant levels

As of writing the index is gaining 0.01% at 89.51 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).