US Dollar bid near 99.70 ahead of Beige Book

Pablo Piovano FXStreet

The US Dollar Index – which measures the buck vs. its main competitors – keeps the positive tone on Wednesday near session tops in the 99.65/70 band.

US Dollar looks to Beige Book

The index is finally posting some gains after three consecutive pullbacks, managing to attract some attention after bottoming out in the proximity of 99.30 on Tuesday.

USD gathered some traction today after US Treasury Secretary Steve Mnuchin ruled out earlier in the morning that President Trump was trying to talk down the greenback.

However, the greenback stays under pressure following recent lacklustre results from the US docket, poor performance of US yields and dwindling expectations of another rate hike at the June meeting.

Currently, CME Group’s FedWatch tool is seeing the probability of a rate hike in June at just above 42%.

Next on tap in the US docket, the EIA will publish its weekly report on crude oil inventories followed by the speech by Boston Fed E.Rosengren (2019 voter, hawkish) and the Fed’s Beige Book.

US Dollar relevant levels

The index is gaining 0.29% at 99.70 and a break above 100.04 (38.2% Fibo of the March drop) would aim for 100.11 (20-day sma) and then 100.61 (55-day sma). On the other hand, the immediate support aligns at 99.36 (low Apr.18) followed by 98.95 (200-day sma) and finally 98.67 (2017 low Mar.27).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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