US Dollar bid around 93.60, US CPI on focus

Tracked by the US Dollar Index, the greenback stays firm so far this week, currently hovering over the 93.60/65 band and closer to recent tops around 93.80.

US Dollar attention to data, Dudley

The index is advancing for the second consecutive session so far today, extending the bounce off last week’s fresh cycle lows near 94.30 on a better sentiment towards the buck and somewhat alleviated effervescence on the US political scenario.

Additionally, the buck has unusually gathered extra traction on the back of second-tier data in the US economy, as per recent auspicious results from the JOLTs report (Tuesday) and Q2’s non-farm productivity (Wednesday).

USD has been also deriving extra support from the recent pick up in risk aversion in the global markets, all in response to a new escalation of threats between North Korea and the US, this time against the backdrop of a potential attack to Guam.

Later in the session, the usual report on the US labour market is due seconded by July’s producer prices. Markets’ attention, however, should stay on the speech by NY Fed W.Dudley (permanent voter, hawkish) in light of the upcoming CPI figures expected tomorrow.

It is worth mentioning that Dudley delivered some hawkish remarks in June, when he noted that US inflation should pick up again on the back of higher wages amidst a robust labour market. Dudley also showed himself confident that the economic expansion has still a long way to go.

US Dollar relevant levels

The index is gaining 0.20% at 93.60 and a break above 93.77 (high Aug.8/9) would aim for 94.11 (high Jul.26) and finally 95.10 (23.6% Fibo of the 2017 drop). On the flip side, the next support lines up at 93.14 (10-day sma) seconded by 93.12 (low Aug.8) and finally 92.39 (2017 low Aug.2).