US Dollar cuts losses, back around 101.30

The greenback – tracked by the US Dollar Index – has recovered from the overnight dip to the 101.10 area and is now looking to extend the rebound in the 101.30 region.

US Dollar bolstered by Fedspeak, data

The index has trimmed weekly losses, although it is still struggling to return to the positive territory amidst a so far negative 4-week streak.

The buying interest around the buck has picked up pace again following supportive comments by FOMC’s governors, while Chair J.Yellen said on Wednesday she expects rates to rise ‘a few times a year’ through 2019. Yellen added at the same time that monetary support from the Federal Reserve could diminish as the central bank is approaching its employment and inflation goals.

Ahead in the session, the usual weekly report on US labour market is due along with Building Permits, Housing Starts, the Philly Fed Manufacturing Index and the DoE’s weekly report on crude oil inventories.

US Dollar relevant levels

The index is gaining 0.01% at 101.31 facing the immediate resistance at 101.72 (high Jan.16) ahead of 102.10 (20-day sma) and then 102.96 (high Jan.11). On the flip side, a breakdown of 100.23 (low Jan.17) would open the door to 99.87 (low Dec.5) and finally 99.49 (low Dec.8).