US Dollar Index sticks to gains, recedes from tops above 94.40

• DXY edges higher to 3-day highs near 94.45 on Wednesday.
• US CPI surprised to the upside in October at 6.2% YoY.
• Weekly Claims came just below expectations at 267K.

The US Dollar Index (DXY), which gauges the greenback vs. a bundle of its main rival currencies, keeps the bid tone unchanged above the 94.00 mark on Wednesday.

US Dollar Index up on yields, CPI

The resurgence of the buying interest in the greenback pushed the index further north of the 94.00 hurdle with some conviction midweek, helped at the same time by the rebound in US yields along the curve and higher-than-expected inflation figures.

In fact, the headline CPI rose 6.2% in the year to October, while the Core CPI gained 4.6% vs. the same month of 2020. Further results in the docket showed Initial Claims rising by 267K in the week to November 6.

From the US cash markets, yields of the 2y note extend the correction to the 0.50% area, while yields of the 10y benchmark note gradually approach the key 1.50% yardstick.

US Dollar Index relevant levels

Now, the index is gaining 0.16% at 94.14 and a break above 94.62 (2021 high Nov.5) would open the door to 94.74 (monthly high Sep.24 2020) and then 95.00 (round level). On the flip side, the next down barrier emerges at 93.87 (weekly low November 9) seconded by 93.48 (55-day SMA) and finally 93.27 (monthly low October 28).