US Dollar spikes to daily highs on Tillerson comments

The US Dollar Index (DXY) – which tracks the greenback vs. its main rivals, leaped to a new daily high at 100.76 during the joint press conference with Russian Foreign Minister Sergey Lavrov and U.S. Secretary of State Rex Tillerson but quickly retreated. At the moment, the index is up 0.03% at 100.66.

Tillerson said that the United Stated and Russia agreed that North Korea must be denuclearized. However, they both agreed that relations are at a low point and Lavrov sounded skeptical about the evidence of the chemical attack in Syria and said that they wanted to investigate the attack further.

• Russia's Lavrov: Russia, U.S. agree diplomatic solution needed for North Korea
• Russia's Lavrov: Want thorough probe of chemical attack in Syria

In the meantime, the latest data from the United States showed that the budget deficit for March increased to $176 bln, missing the expectations of $150 bln. Further details of the report highlighted that the spending rose by $57 bln compared to a year earlier while the revenues decreased by $10 bln. 

Technical levels

The initial support for the index could be seen at 100.30 (Apr. 6 low) followed by 100 (psychological level) and 99.50 (Mar. 23 low). To the upside, resistances align at 100.75 (daily high), 101.25 (Monday high) and 102 (psychological level).