US Dollar firm around 93.30 ahead of data

The greenback, in terms of the US Dollar Index, is trading on a better footing at the beginning of the week, recovering the 93.30 area after last week’s test of the 93.00 neighbourhood, fresh multi-month lows.

US Dollar supported around 93.00

The index has recovered the smile on Monday after market participants seem to have digested Friday’s US data, where the GDP figures for the April-June period showed the economy is expected to expand more than initially estimated, although inflation still appears without traction.

DXY is coming up after testing the 93.00 area during last week - levels last traded in September 2016 – and all amidst a generalized deteriorated sentiment surrounding the buck, which mainly stems from the uncertainty in the US political arena.

Today in the US data space, pending home sales is due along with the Chicago PMI.

In the meantime, the weak tone in USD is reflected on the speculative community, which has turned net short for the first time since early June 2014 in the week to July 25 and according to the latest CFTC report.

US Dollar relevant levels

The index is gaining 0.11% at 93.30 and a breakout of 93.81 (10-day sma) would aim for 94.11 (high Jul.26) and then 94.74 (21-day sma). On the downside, the immediate support emerges at 93.00 (2017 low Jul.27) seconded by 92.52 (low Aug.24 2015) and finally 91.88 (2016 low May 3).