US Dollar picks up pace near 99.00 ahead of US ISM

The greenback, tracked by the US Dollar Index, has started the week on a firm fashion, moving around the critical 99.00 handle.

US Dollar focus on ISM, Mnuchin

The index is posting moderate gains on Monday against the backdrop of subdued activity in the global markets due to the Labor Day holiday.

USD continues to look for catalysts around the 99.00 region, where sits the key 11-month support/resistance line and the 200-day sma.

Despite sellers remain unable to move further south of the area in a more sustainable way, buyers are also finding it quite hard to push above it in a context where market sentiment remains influenced by the upcoming French elections, geopolitical risks and permanent mood changes in the Trump’s administration.

Later in the session, the ISM Manufacturing will be the salient event, followed by Personal Income/Spending, inflation figures tracked by the PCE (Fed’s preferred gauge) and the speech by Treasury Secretary Steve Mnuchin.

From the positioning front, USD net longs have increased a tad to 2-week highs during the week ended on April 25, as per the latest CFTC report.

US Dollar relevant levels

The index is up 0.14% at 99.03 and a break above 99.05 (200-day sma) would open the door to 99.21 (high Apr.27) and finally 99.24 (high Apr.24). On the flip side, the next hurdle lines up at 98.58 (low Apr.28) followed by 98.56 (2017 low Apr.25) and then 95.91 (low Nov.9 2016).