US Dollar stays bid near 96.00, Yellen eyed
The greenback, in terms of the US Dollar Index, keeps the upbeat tone so far this week, although a test/surpass of the critical 96.00 handle still remains elusive.
US Dollar firm ahead of Yellen
The index is advancing for the third straight session so far today, looking to regain the key 96.00 handle and almost fully retracing last Thursday’s deep pullback to the mid-95.00s.
The greenback’s up move stays supported by the solid rebound of US yields, where the 10-year benchmark stays close to the key 2.40% level, area last visited in early May.
Also lending support to the buck, San Francisco Fed J.Williams (2018 voter, hawkish) said earlier in the session that a third rate hike this year looks ‘reasonable’ while he expects the Fed to start normalizing its balance sheer at some point later in the year.
In the US data space, the NFIB index is due followed by JOLTs Job Openings and speeches by FOMC’s L.Brainard (permanent voter, centrist) and Minneapolis Fed N.Kashkari (voter, dovish).
US Dollar relevant levels
The index is gaining 0.08% at 95.89 facing the next up barrier at 96.25 (high Jul.5) seconded by 96.32 (high Jun.28) and finally 96.45 (21-day sma). On the other hand, a breach of 95.56 (low Jul.6) would open the door to 95.22 (2017 low Jun.30) and then 94.95 (low Sep.22 2016).
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.
