US Dollar up smalls near 92.80, US data eyed

After bottoming out in fresh cycle lows near 92.40 on Wednesday, the US Dollar Index – which tracks the greenback vs. its main competitors – has regained some attention and is now hovering over the 92.80/85 band.

US Dollar depressed ahead of Payrolls

Further selling pressure on Wednesday forced the index to test the area of 92.40, levels last seen in May 2016, prompting investors to shift their focus to 2016 lows in the 91.90 region at the same time.

The US political scenario remains the sole catalyst of the accelerated pullback seen in the buck in past weeks, while rising skepticism over another rate hike by the Federal Reserve (likely in Q4) has been also playing its part in the decline.

Additionally, yesterday’s dovish comments from FOMC’s J.Bullard gave the greenback no excuses to move higher. Bullard suggested the Fed should now pause its tightening cycle in order to achieve its inflation target quicker.

In the US data space, the usual weekly report on the labour market is due seconded by ISM non-manufacturing, Markit’s services PMI and June’s factory orders.

US Dollar relevant levels

The index is gaining 0.10% at 92.84 and a breakout of 93.29 (10-day sma) would aim for 94.11 (high Jul.26) and then 94.26 (21-day sma). On the flip side, the immediate support aligns at 92.41 (2017 low Jul.31) seconded by 91.88 (2016 low May 3) and finally 91.50 (low Jan.15 2015).