US Dollar deflates from 101.00 on data

The greenback – gauged by the US Dollar Index – has abandoned the area of daily highs above the 101.00 handle following US results.

US Dollar trims gains post-US docket

The index tested the 100.80 area after the advance gauge of the US Consumer Sentiment measured by the Reuters/Michigan index missed expectations for the month of February, coming in at 95.7 vs. 97.9 expected.

Further results from the index showed Consumer Expectations also coming in below consensus at 87.7 vs. 89.0 forecasted.

The results hit the buck and prompted the current knee-jerk, although the index remains well on its way to close the first week with gains since late December.

The upbeat tone around the buck has been boosted further on Thursday after President D.Trump hinted that a (‘phenomenal’) tax reform should be in the offing and likely to be announced within the next 2-3 weeks, adding to the already bullish bias sparked after Fed speakers supported further the view of three rate hikes by the Fed this year.

US Dollar relevant levels

The index is gaining 0.13% at 100.79 facing the next resistance at 101.01 (high Feb.10) ahead of 101.34 (55-day sma) and finally 101.71 (high Jan.19). On the other hand, a breach of 100.33 (20-day sma) would open the door to 100.03 (low Feb.8) and then 99.91 (low Feb.7).