US Dollar struggles near 95.50, Fedspeak on sight

Measured by the US Dollar Index, the buck is looking to keep its daily gains for the time being around the 95.60 region.

US Dollar muted on Yellen, looks to Fedspeak, data

Despite advancing for the second consecutive session so far, the greenback’s stance remains fragile following Yellen’s remarks and ahead of upcoming Fedspeak and key data.

In the meantime, the YTD low in the vicinity of 95.20 still represents quite a significant magnet for sellers while gains remain so far capped around last week’s tops near 96.30.

Looking ahead, the buck should stay under the microscope in light of speeches by FOMC’s L.Brainard (permanent voter, dovish) and Chicago Fed C.Evans (centrist, voter). Recall that Brainard said on Tuesday that the Fed should tighten its policy on a more cautious approach in order to achieve its inflation goal.

Furthermore, tomorrow’s releases of June’s inflation figures and retail sales should probe critical for the near term direction of USD, while data could also influence on investors’ perception of a third rate hike by the Fed in H2.

US Dollar relevant levels

The index is losing 0.02% at 95.52 and a breach of 95.25 (low Jul.13) would open the door to 95.22 (2017 low Jun.30) and then 94.95 (low Sep.22 2016). On the upside, the next up barrier emerges at 95.69 (10-day sma) seconded by 96.25 (high Jul.5) and finally 96.32 (high Jun.28).