US Dollar leaps to 89.80, fresh daily highs

• The index is gathering extra traction near the 90.00 milestone.
• US 10-year yields navigating session lows in the 2.75% area.
• US Q4 GDP figures came in above estimates at 2.9%.

The US Dollar Index (DXY), which measures the greenback vs. a basket of its main rivals, is now pushing higher and is testing the 89.80 region.

US Dollar bid after data

The index is advancing to fresh 4-day tops in the 89.70/80 band on Wednesday amidst month-end flows, rising risk-on trade and auspicious prints from the US calendar.

In fact, risk-on sentiment and another confirmation of the ultra-loose monetary policy by BoJ’s Kuroda (earlier in the session) continue to weigh on the safe haven JPY, in turn pushing USD/JPY to new peaks and lending extra oxygen to the buck.

Additionally, month/quarter-end flows continue to be the main driver behind the price action this week ahead of the expected reduced activity on Maundy Thursday and Good Friday.

Furthermore, the greenback stays bid on the back of positive results from another revision of US GDP figures, which now sees the economy expanding at an annualized 2.9% in the October-December period (vs. 2.7% forecasted).

US Dollar relevant levels

As of writing the index is up 0.52% at 89.80 and a break above 89.88 (23.6% Fibo of 95.15-88.25) would open the door to 90.44 (high Mar.20) and finally 90.57 (high Feb.8). On the flip side, next support aligns at 88.94 (low Mar.27) seconded by 88.44 (low Jan.26) and then 88.25 (2018 low Feb.16).