US Dollar up smalls around 89.20, ISM eyed

• USD remains bid beyond 89.00.
• Post-payrolls sentiment still prevails.
• US ISM non-manufacturing next on tap.

The greenback, when tracked by the US Dollar Index (DXY), remains on a positive footing at the beginning of the week and is looking to consolidate the trade above the key 89.00 barrier.

US Dollar now focused on US data

The index is adding to Friday’s gains above the 89.00 handle while market participants continue to gauge the recent auspicious results from the US labour market.

Recall that payrolls came in above expectations at 200K during last months, while average hourly earnings, a proxy for ‘wage inflation’ rose at an annualized 2.9%, also surprising to the upside.

Recent results did nothing but confirm the solid health of the US labour market, at the same time paving the way for a rate hike by the Federal Reserve at the March meeting.

Later in the NA session, US ISM non-manufacturing will be the salient event seconded by Markit’s services PMI for the month of January.

US Dollar relevant levels

As of writing the index is up 0.02% at 89.18 facing the next up barrier at 90.70 (high Jan.22) followed by 90.98 (high Jan.18) and then 92.64 (high Jan.9). On the flip side, a break below 88.55 (low Feb.2) would open the door to 88.42 (2018 low Jan.25) and finally 86.60 (weekly trend line off 72.70).