US Dollar regains 99.00 and above, Fedspeak, data eyed

The greenback, in terms of the US Dollar Index, is trading on a better mood on Tuesday, now looking to extend the up move further north of the 99.00 handle.

US Dollar focus on data, Fedspeak

The index has managed to regain some ground after dropping to fresh multi-month lows near 98.50 on Monday, as market participants continued to dump the buck in response to the ‘Trumpcare’ fiasco last Friday.

The area around 98.50 – where sits the key 200-day sma – seems to have provided quite decent support for the time being, although USD is poised to stay under pressure as uncertainty around Trump’s ability to deliver his promised fiscal reforms continues to grow.

The speculative community had also its say on the buck’s decline, as USD net longs have retreated to 3-wek lows during the week ended on March 21 as seen in the latest CFTC report.

In the US data space, CB’s Consumer Sentiment and Goods Trade Balance are due later along with speeches by Chief J.Yellen, Board member J.Powell (permanent voter, centrist), KC Fed E.George (2019 voter, hawkish) and Dallas Fed R.Kaplan (voter, hawkish).

US Dollar relevant levels

The index is up 0.08% at 99.11 and a break above 99.81 (high Mar.24) would aim for 100.27 (high Mar.20) and then 100.69 (55-day sma). On the flip side, the next support aligns at 98.67 (low Mar.27) followed by 98.59 (200-day sma) and finally 98.22 (10-month support line).