US Dollar deflates to 97.10, data eyed

The greenback, in terms of the US Dollar Index, is trading on the back footing on Friday, currently hovering over the 97.15/10 band.

US Dollar looks to data releases, Fedspeak

The index is shedding further ground today and fading yesterday’s up tick, while struggling to close the week in the positive territory.

The recent recovery in crude oil prices plus the soft tone in US yields as of late have weighed on the buck’s performance, prompting DXY to put further distance from earlier tops in the key region around 97.50.

USD gained some traction at the beginning of the week, always propped up by supportive Fedspeak signaling the likeliness of further tightening by the Federal Reserve in H2.

Later in the NA session, Markit’s manufacturing/services PMI, new home sales and speeches by St. Louis Fed J.Bullard (2019 voter, centrist), Cleveland Fed L.Mester (2018 voter, hawkish) and J.Powell (permanent voter, centrist).

US Dollar relevant levels

The index is losing 0.15% at 97.11 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).