US Dollar in session tops, targets 90.00

• The index is picking up pace and approaches the critical 90.00 handle.
• USD on a firmer footing following new US Treasury sanctions against Russia.
• US Philly Fed came in softer than expected, Empire State index improves.

The greenback, in terms of the US Dollar Index (DXY), is edging higher and at the same time approaching the critical 90.00 neighbourhood, or 2-day tops.

US Dollar in 2-day tops

The index is adding to Wednesday’s gains and is now flirting with the psychological milestone at 90.00 the figure following announcements of further sanctions against Russia, which appears cyber-related.

In addition, President Trump is expected to make an announcement on China trade investigation in the next weeks, according to TV news channel CNBC.

Today’s US calendar showed the key Philly Fed manufacturing index coming in below estimates at 22.3 in March, while on the bright side, Initial Claims, Import Prices and the Empire State gauge all came in above initial forecasts.

Looking at the broader picture, the US political arena, trade issues and renewed effervescense around Russia appear as the main drivers behind the buck’s price action, somewhat relegating the Fed’s plans for further tightening to the back burner.

US Dollar relevant levels

As of writing the index is gaining 0.12% at 89.88 and a break above 90.57 (high Feb.8) would open the door to 90.93 (high Mar.1) and finally 91.00 (high Jan.18). On the flip side, the immediate support aligns at 89.43 (low Mar.7) seconded by 88.44 (low Jan.26) and then 88.25 (2018 low Feb.16).