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    US Dollar challenges highs near 94.70

    The greenback, tracked by the US Dollar Index, is now picking up pace and testing the area of daily tops in the 94.70/75 band.US Dollar propped up by risk aversionThe index is extending the rebound from last week’s troughs in the mid-93.00s against the backdrop of a broad-based risk-off environment.In fact, softer-than-expected data from Japanese and Chinese dockets plus increasing bets on ‘Brexit’ seem to have reignited concerns over the global growth, adding to the swelling risk aversion.Collaborating with the USD’s rebound, US yields have bounce off daily lows while Fed Fund rate contracts remains on the upside. Recall that according to CME Group’s FedWatch tool, the probability of a rate hike by the Fed in July remains above 22%.US Dollar relevant levelsThe index is gaining 0.39% at 94.31 facing the next hurdle at 94.51 (55-day sma) followed by 94.89 (55-day sma) and then 95.96 (high May 30). On the flip side, a breach of 93.41 (low Jun.8) would open the door to 92.76 (78.6% Fibo of the May up move) and then 91.88 (2016 low May 3). 

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