US Dollar in highs near 101.30 ahead of Trump

The US Dollar Index (DXY) – which gauges the buck vs. its main rivals – has regained buying interest as is now flirting with daily highs in the 101.30/35 band.

US Dollar all the attention on Trump

The index keeps the erratic performance so far this week, bouncing off multi-week lows in the 100.20 area and retaking the critical 101.00 handle and above as market participants remain cautious on the upcoming speech by US president Donald Trump.

Solid US results as of late, supportive Fedspeak – particularly from Chair J.Yellen - and the dovish tone from the European Central Bank on Thursday have been supporting the greenback this week, albeit the bullish attempts lacked of sustainability.

Later in the session, Trump’s inauguration and speech will take centre stage, seconded by speeches by Philly Fed Patrick Harker (voter, hawkish) and San Francisco Fed John Williams (2018 voter, centrist).

US Dollar relevant levels

The index is gaining 0.26% at 101.36 facing the immediate resistance at 101.72 (high Jan.16) ahead of 102.01 (20-day sma) and then 102.96 (high Jan.11). On the flip side, a breakdown of 100.23 (low Jan.17) would open the door to 99.87 (low Dec.5) and finally 99.49 (low Dec.8).