US Dollar Index clinches highs near 97.00

The US Dollar Index (DXY), which gauges the buck vs. its main rivals, has regained buying interest and managed to retest the 97.00 handle, or daily highs.

US Dollar boosted by Dudley’s comments

The index met renewed upside pressure after NY Fed W.Dudley (permanent voter, hawkish) said earlier today that halting the current tightening cycle could damage the economy, while wages and inflation are expected to pick up.

In the meantime, the greenback continues to rebound from daily lows in the 96.80/75 band against the backdrop of a vacuum of data in the US docket and while market participants continue to adjust to the recent FOMC meeting.

On another direction, USD speculative net longs kept losing ground for yet another week, this time retreating to levels last seen in early October 2016 during the week ended on June 13, as per the latest CFTC report

US Dollar relevant levels

The index is up 0.12% at 96.98 facing the next up barrier at 97.56 (high Jun.15) followed by 97.63 (38.2% Fibo of the May-June drop) and then 98.04 (50% Fibo of the May-June drop). On the flip side, a breach of 96.31 (2017 low Jun.14) would target 95.91 (low Nov.9 2016) and finally 94.95 (low Sep.22 2016).