US Dollar finds support around 100.00 ahead of data, Fedspeak

The US Dollar Index – which tracks the buck vs. its main competitors – is receding from recent fresh yearly tops although it found good support around 100.00 the figure.

US Dollar now looks to CPI, Yellen

After reaching tops in levels last seen in December 2015 near 100.60, the index met some selling pressure albeit buyers seem to be clustered around the psychological handle at 100.00.

USD is so far losing ground for the first time after eight consecutive advances, including the already mentioned 2016 peak above 100.50 seen yesterday.

Expectations of a Fed’s rate hike next month remain the exclusive driver behind the needle-like upside in the greenback, well reinforced by reflation prospects in the US economy following potential fiscal stimulus by the Trump administration.

Looking ahead, the buck will be in the limelight as inflation figures tracked by the CPI , seconded by Housing Starts, Building Permits, the Philly Fed index and the weekly report on the labour market.

In addition, Fed speakers including New York Fed W.Dudley (permanent voter, neutral), L.Brainard (permanent voter, dovish), Chicago Fed C.Evans (2017 voter, dovish) and the testimony by Chair J.Yellen on the ‘Economic Outlook’ before the Joint Economic Committee of Congress should keep the focus on the buck.

US Dollar relevant levels

The index is down 0.35% at 100.07 facing the next support at 99.38 (low Nov.14) followed by 99.13 (high Nov.11) and finally 98.62 (20-day sma). On the upside, a break above 100.60 (2016 high Nov.16/high Dec.3 2015) would target 102.19 (monthly high Apr.2003).

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