US Dollar firmer, regains 95.00 and above

The greenback, tracked by the US Dollar Index, has recovered the smile somewhat during the European morning, now looking to extend the rebound further north of the 95.00 handle.

US Dollar comes up from YTD lows

After bottoming out in levels last seen in September 2016 in the 94.90/85 band during overnight trade, the index managed to regain some buying interest and is now flirting with the low-95.00s.

The greenback reacted (very) adversely after US results from June’s inflation figures gauged by the CPI and retail sales have disappointed market expectations on Friday, impacting heavily on US yields and deteriorating further the sentiment surrounding the index.

In addition, Chicago Fed C.Evans (voter, dovish) collaborated with the buck’s decline after suggested the Fed should move away slowly from the current accommodative stance in order to achieve its inflation target. It is worth noting that last week’s equally dovish comments by FOMC’s L.Brainard forced DXY to retreat from tops around the 96.00 region

In the US data space, the NY Empire State index is only expected later in the NA session, ahead of tomorrow’s TIC flows and the NAHB index.

US Dollar relevant levels

The index is gaining 0.15% at 95.04 facing the next up barrier at 95.56 (10-day sma) seconded by 95.61 (high Jul.14) and finally 95.96 (high Jul.11). On the other side, a break below 94.87 (2017 low Jul.17) would open the door to 94.2442 (low Sep.8 2016) and then 94.05 (low Aug.18 2016).

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