US Dollar clings to 99.00 ahead of US GDP

The greenback is extending its sideline theme today, gravitating around the 99.00 handle when tracked by the US Dollar Index.

US Dollar attention on US GDP

The index is struggling to clinch its third consecutive daily advance so far today, coming up from fresh 2017 lows in the mid-98.00s recorded on Tuesday as the risk-on trade sentiment continues to dwindle.

The buck picked up extra pace after President Draghi delivered a dovish tone at Thursday’s ECB meeting, fuelling the selling bias around the single currency and thus lending extra support to the greenback.

USD should remain under pressure nonetheless, as the probability of a Federal shutdown stays alive unless the Congress pass a continuing resolution later in the day. Market consensus, however, seems to lean on a last-minute deal for the time being.

Later in the NA session, the first revision of the GDP figures for the first quarter is due, with forecasts seeing the economy to have expanded at an annualized 1.3% during the January-March period. In addition, the Chicago PMI is also due along with the final gauge of April’s Consumer Sentiment.

US Dollar relevant levels

The index is down 0.02% at 99.00 facing the next support at 98.88 (11-month support line) followed by 98.61 (low Apr.26) and finally 98.56 (2017 low Apr.25). On the flip side, a break above 99.21 (high Apr.27) would aim for 99.24 (high Apr.24) and finally 99.59 (38.2% Fibo of the April drop).