US Dollar keeps highs near 102.40, Fedspeak eyed

The greenback – tracked by the US Dollar Index (DXY) – keeps the firm note on Monday, currently hovering over the 100.30/40 band.

US Dollar focus on data, Fedspeak

The index is advancing for the second consecutive session so far today, extending the rebound from recent lows in the 101.30 region while markets continue to adjust to Friday’s figures from the US labour market during December (156K).

The greenback remains in a cautious tone for the time being and it seems to struggle between a resumption of the upside momentum (with target at recent tops near 103.80) and a continuation of the correction lower.

Looking ahead, US Retail Sales and the advance gauge of the Consumer Sentiment (Friday) will be the salient releases along with speeches by several FOMC governors throughout the week, including Chairwoman J.Yellen. In addition, president-elect Donald Trump will give a press conference on Wednesday.

On the positioning side and following the latest CFTC report, USD speculative net longs stayed in the area of 3-week tops during the week ended on January 3.

Today’s US data space includes the Fed’s Labor Market Conditions Index followed by speeches by Atlanta Fed Dennis Lockhart (centrist, non voter) and Chicago Fed Charles Evans (voter, dovish).

US Dollar relevant levels

The index is gaining 0.23% at 102.40 facing the next hurdle at 102.51 (20-day sma) ahead of 103.81 (2017 high Jan.4) and finally 107.38 (monthly high Dec.2002). On the flip side, a breakdown of 101.30 (low Jan.6) would open the door to 100.75 (low Dec.14) and then 100.73 (55-day sma).