US dollar index rises for the third day in a row

The US dollar index rose on Monday for the third trading day in a row and reached the highest level in three weeks. The index hit levels on top 101.00, it peaked at 101.09 but during the American session pulled back to 100.95. 

The greenback remained strong in the market continuing with last week impulse, particularly against the euro and the yen. “Markets continued to run with a positive view of the looming economic policies from Trump. In a thin news session, US equities made fresh record highs, and the US dollar and interest rates rose”, said analysts from Westpac. The Dow Jones was up 0.77%, at 20,242 headed toward another record close while the 10-year yield rose to 2.44%. 

No relevant economic reports were released on Monday. US President Trump meet with Canadian PM Trudeau. Tomorrow during the Asian session inflation data from China will be release and in the US the NFIB business optimism index and the product price index are due.  The key event of Tuesday is likely to be the semi-annual testimony of Fed Chair Yellen before the Senate’s banking committee. 

DXY levels 

Resistance levels are seen at 101.10 (daily high), 101.25 and 101.70 (Jan 16 & 19 high). On the opposite direction, support might be located at 100.50/55 (Feb 10 & 13 low), 100.00 (psychological / Feb 9 low) and 99.45 (Feb 3 low).