Dollar Pushing Higher – GDP Up Next

Fresh Yields SurgeThe US Dollar is back in the driving seat today with US yields taking off once again following a softer start to the week. 10-year yields are testing the 5% mark once again and look likely to push higher still if today’s US data reports show further evidence of strength in the economy. Advance Q2 GDP is expected to tick up to 4.5% from 2.1% over the prior quarter, endorsing the Fed’s intention to keep rates at elevated levels for longer. Durable goods are also expected to rise which should keep USD bull sentiment firmly intact over the day.House Speaker Finally ElectedAnother boost for the Dollar came from the US Senate finally electing a House Speaker yesterday after a long stand-off. While policy challenges lie ahead, the selection has put an end to the uncertainty around the issue and allows the government to get back to dealing with more pressing issues.Bullish USD BiasGiven the pull-back in equities, USD looks likely to remain supported near-term, particularly if US data ahead of the weekend comes in strong. Residual safe-haven demand for USD also continues to underpin the market here and with traders tentatively watching developments in the Middle East, this dynamic looks likely to continue.Technical ViewsDXYThe correction lower in DXY looks over for now with price moving back up through last week’s highs. With momentum studies moving higher, the focus is now on a fresh challenge of the 107.57 level and a breakout towards the 109.18 level thereafter. To the downside, 104.95 remains the key support to note.