US Dollar reverses early dip, back closer to over one-week tops

   •  Yesterday's upbeat US GDP growth figures continue to underpin.
   •  Easing global trade war fears/geopolitical tensions remain supportive.
   •  Traders now eye US macro releases for some fresh impetus.

The US Dollar Index, which tracks the greenback performance against a basket of six major currencies, retreated a bit during the Asian session on Thursday.

The index touched a session low level of 89.59 but has now managed to recover a major part of the early slide and is currently placed within striking distance of over 1-week tops touched in the previous session.

Against the backdrop of receding global trade war fears and positive geopolitical developments, yesterday's bullish US GDP growth figures, which showed that the economy expanded at an annualized pace of 2.9% in the last quarter of 2017, helped limit immediate downside. 

Investors now look forward to a flurry of US economic releases - the core PCE price index (the Fed's preferred inflation gauge), personal income/spending data, usual initial weekly jobless claims, Chicago PMI and revised UoM consumer sentiment - for some fresh impetus later during the NA session.

In the meantime, the prelim German CPI figures, along with the final UK Q4 GDP print and current account data, would influence the price dynamics during the European session.

Technical levels to watch

Any subsequent up-move is likely to confront immediate resistance near the 90.00 handle, above which the index seems to have towards retesting 90.45-50 supply zone. On the flip side, weakness below 89.60-55 area is likely to get extended back towards the 89.10-89.00 region en-route 88.70 level.