US DOLLAR INDEX REMAINS FIRM AND PRINTS NEW YTD PEAKS

• The index fades the recent weakness and clinches new 2022 peaks.
• US yields show some signs of recovery across the curve.
• Weekly Claims, Producer Prices next on tap in the US docket.

The greenback, in terms of the US Dollar Index (DXY), leaves behind two consecutive daily drops and advances to new cycle tops past 108.60 on Thursday.

US DOLLAR INDEX LOOKS STRONGER POST-CPI

The index resumes the upside following a brief correction and trades in fresh peaks beyond 108.60, an area las visited in October 2002.

The move higher in the dollar appears to be supported by renewed speculation of a full-point interest rate hike at the next Fed gathering on July 27. This view was particularly exacerbated after the US inflation rose more than estimated in June, running at new 40-year highs beyond 9% YoY.