US Dollar unchanged round 100.70, Yellen, CPI on sight

The greenback – when tracked by the US Dollar Index (DXY) – is looking to extend last week’s up trend, currently hovering over the 100.70 region.

US Dollar focus on Yellen, CPI

The index stays in the upper end of the recent range, trading close to last week’s tops just above the 101.00 handle against a broad-based lack of direction in the global markets.

The positive tone (at least not negative/belligerent) from the meeting between President D.Trump and PM S.Abe over the weekend has revived the risk-on trade and prompted JPY-sellers to step in, lifting USD/JPY back above the 114.00 handle and supporting the Dollar across the board.

Nothing scheduled today in the US data space, although the testimony by Chair J.Yellen on Tuesday and Wednesday plus the release of inflation figures tracked by the CPI (Wednesday) should keep the interest around the buck.

On the data front, USD speculative longs have retreated for the sixth straight week, while net longs climbed to 2-week tops in the week ended on February 7, as per the latest CFTC report.

US Dollar relevant levels

The index is gaining 0.01% at 100.74 facing the next resistance at 101.02 (high Feb.10) ahead of 101.32 (55-day sma) and finally 101.71 (high Jan.19). On the other hand, a breach of 100.56 (low Feb.10) would aim for 100.31 (20-day sma) and then 100.03 (low Feb.8).