US Dollar down smalls near 99.50 ahead of US CPI

The greenback, gauged by the US Dollar Index, is posting marginal losses so far today, currently navigating the mid-99.00s ahead of top-tier releases in the US docket.

US Dollar attention to CPI, Fedspeak

The index is retreating for the second session in a row so far today, receding some ground after a positive performance during the first half of the week, including a spike to the 99.80 region, where the bull run seems to have found tough resistance.

Positive Fedspeak and increasing speculations on further tightening by the Federal Reserve at its June meeting stay as the main drivers behind the buck’s recovery from 2017 lows in the 98.30 region recorded on Monday, all sustained by a robust recovery of yields in the US money markets.

Currently, the probability of higher rates to be announced next month is at just above 83%, according to CME Group’s FedWatch tool.

In the data space, US inflation figures measured by the CPI for the month of April are due next followed by Retail Sales and the advanced gauge of May’s Consumer Sentiment.

In addition, Chicago Fed C.Evans (voter, centrist) and Dallas Fed P.Harker (voter, hawkish) are due to speak.

US Dollar relevant levels

The index is losing 0.06% at 99.47 and a break below 99.38 (low May 11) would open the door to 99.21 (20-day sma) and then 99.12 (2200-day sma). On the upside, the next hurdle lines up at 99.61 (high May 10) ahead of 99.81 (50% Fibo of the April-May drop) and finally 99.94 (high Apr.21).