US Dollar unresponsive to Bullard comments, remains flat on day above 93

The US Dollar Index, which tracks the greenback against a basket of six trade-weighted peers, is having a difficult time finding direction in the NA session amid low trading volumes. As of writing, the index is at 93.35, virtually unchanged on the day.

The economic calendar on Monday didn't feature any data that could impact the movements of the index, and the DXY was able to preserve its gains from Friday. Investors followed the headlines from St. Louis Fed President James Bullard, who gave a speech titled “A Low Inflation Surprise for U.S. Monetary Policy” at the 2017 conference of America’s Cotton Marketing Cooperatives on Monday, to find a fresh impetus.

Bullard didn't offer anything that the markets didn't already know and failed to bring any volatility to the markets. Regarding the balance sheet reduction, Bullard said that he was in favor of starting it soon and that he was expecting the impact on the markets to be little. Bullard further added that the current level of the policy rate was appropriate.

• Fed's Bullard: Trend of 2% U.S. economic growth appears to be intact
• Fed's Bullard: Drop in US inflation may be persistent, it is concerning for Fed
• Fed's Bullard: Expectation of tighter ECB policy is behind US dollar decline this year

Tuesday's economic docket from the U.S. will be featuring the NFIB Business Optimism and the IBD/TIPP Economic Optimism indexes. 

Technical outlook

On the upside, the initial hurdle for the index aligns at 93.80 (Jul. 28 high) ahead of 94.20 (Jul. 21 high) and 95 (psychological level/Jul. 20 high). On the downside, supports could be seen at 93 (psychological level), 92.40 (Aug. 2 low) and 91.90 (May 3, 2016, low).