US Dollar struggles for direction above 97.00

The greenback – gauged by the US Dollar Index – has lost some upside momentum as of late although it so far manages to keep the trade above the key 97.00 handle.

US Dollar gains still capped around 97.50

The index is down for the second consecutive session this week, reverting a positive start and with gains further north of the 97.50 area still proving elusive. The downside, however, appears contained in the vicinity of the 97.00 handle.

Positive comments from FOMC governors were behind the moderate rebound in the buck, although the earlier impetus appears mitigated in the past couple of sessions.

USD derived some extra weakness as market participants keep weighing the effects of the ongoing decline in crude prices vs. inflation in US economy, keeping US yields depressed at the same time.

Data wise today in the US calendar, the usual report on Initial Claims is due along with a speech by FOMC’s J.Powell (permanent voter, centrist).

US Dollar relevant levels

The index is losing 0.03% at 97.19 and a breach of 96.31 (2017 low Jun.14) would target 95.91 (low Nov.9 2016) and finally 94.95 (low Sep.22 2016). On the upside, the next hurdle lines up at 97.56 (high Jun.15) followed by 97.63 (38.2% Fibo of the May-June drop) and then 98.04 (50% Fibo of the May-June drop).