US Dollar up smalls near 101.00, FOMC, Fedspeak on focus

The greenback is clinging to its daily gains at the beginning of the week, now lifting US Dollar Index to the boundaries of the critical barrier at 101.00 the figure.

US Dollar looks to Trump, FOMC, Fedspeak

The index has started Monday with a smile, extending the positive momentum for the third session in a row for the time being.

However, a more sustainable breakout of the key 101.00 handle seems to require a stronger catalyst, particularly after the hawkish tone from Chief Yellen at her recent testimonies appeared insufficient to spark another durable leg higher.

US markets will be closed today due to the Presidents’ Day holiday, leaving the buck to the mercy of the broader risk appetite trends. Looking ahead, the FOMC minutes (Wednesday) and a slew of Fed speakers throughout the week should keep the focus on USD in an otherwise calm calendar.

From the perspective of the speculative community, USD net longs continued to retreat during the week ended on February 14, back to levels last seen in late October, as per the latest CFTC report.

US Dollar relevant levels

The index is gaining 0.05% at 100.94 facing the next resistance at 101.29 (55-day sma) followed by 101.75 (high Feb.15) and finally 101.95 (23.6% Fibo of the November-January up move). On the flip side, a break below 100.40 (low Feb.16) would aim for 100.15 (100-day sma) and then 100.03 (low Feb.8).