US Dollar Index reaches fresh tops around 100.00

• The index pushes higher and records new cycle peaks.
• US yields keep the uptrend well and sound on Friday.
• February Wholesale Inventories are the sole release on the docket.

The bid bias around the greenback remains well in place for yet another session and lifts the US Dollar Index (DXY) to new cycle peaks just below the 100.00 mark at the end of the week.

US Dollar Index supported by yields, Fedspeak

The index advances for the seventh consecutive session so far on Friday on the back of the persistent selling bias in the risk complex and the relentless march north in US yields across the curve.

It is worth noting that the last time the index had such a positive streak was back in late January-early February 2019.

Firm speculation of a more aggressive tightening by the Federal Reserve in the next months was once again reinforced by Fed’s rate-setters throughout the week, which in turn morphed into extra wings to US yields.

In the US data space, Wholesale Inventories will be the sole release later in the NA session.

What to look for around USD

The dollar remains bid and finally manages to flirt with the psychological 100.00 barrier. So far, the near-term price action in the greenback continues to be dictated by geopolitics, while the case for a stronger dollar remains well propped up by the current elevated inflation narrative, a probable tighter rate path by the Fed, higher US yields and the solid performance of the US economy.

Key events in the US this week: Wholesale Inventories (Friday).

Eminent issues on the back boiler: Escalating geopolitical effervescence vs. Russia and China. Fed’s rate path this year. US-China trade conflict. Future of Biden’s Build Back Better plan.

US Dollar Index relevant levels

Now, the index is advancing 0.13% to 99.88 and a break above 99.99 (2022 high April 8) would open the door to 100.00 (psychological level) and finally 100.55 (monthly high May 14 2020). On the downside, initial contention is seen at 97.68 (weekly low March 30) seconded by 97.46 (55-day SMA) and then 96.82 (100-day SMA).