US dollar DXY index clings to gains near 94.00 level

• The DXY index extends Monday’s gains and is approaching the 94.00 level.
• Solid support has appeared in the 93.50 region so far.
• Consumer confidence and housing data stand out on today’s economic calendar.

The US dollar DXY index, which measures the strength of the dollar against a basket of major currencies, extends the weekly rebound and gradually approaching the key barrier of 94.00 during the European session on Tuesday.

DXY Index focuses on returns and data

The DXY index advances for the second day in a row, extending the optimism seen earlier in the week after the slight rebound in US yields and alternate risk appetite trends.

In fact, yields at the bottom and top of the curve advanced modestly near the 0.45% and 1.64% levels, respectively, on Tuesday, reversing recent weakness.

Looking at the bigger stage persistent high inflation continues to test the “transitory” narrative around rising consumer prices for the time being, while persistent supply disruptions amid rising demand appear to underpin the “higher for longer” view. around inflation.

Regarding the US data, today highlights the publication of housing data with the housing price index measured by the FHFA, the S & P / Case-Shiller index and new home sales for the month of September. Additionally, the Conference Board will release its consumer confidence figure ahead of the Richmond Fed Manufacturing Index.

Relevant levels of the US dollar DXY index

At the time of writing, the DXY index is gaining 0.10% on the day, trading at 93.91. A break above 94.17 (October 18 high), would open the door to 94.56 (October 12 high) and then 94.74 (September 2020 high). On the other hand, the next support is at 93.49 (October 21 low), followed by 93.28 (55-day SMA) and finally 92.98 (September 23 low).