US Dollar sticks to gains, 96.00 still untouched

The US Dollar Index – which tracks the buck vs. its main rival currencies - is holding on to its daily gains around the 95.85/90 band as the NA session is under way.

US Dollar now looks to Yellen, data

The index keeps the optimism intact during the first sessions of the week, advancing since Friday and (apparently) gearing up for a potential test of the critical resistance at 96.00 the figure.

USD inability to test/break above the 96.00 mark finds some echo in the US money markets, where the 10-year reference is also struggling to surpass the key 2.40% level. It is worth mentioning that US 10-year yields have been advancing almost uninterruptedly since late June lows near 2.12%.

The buck has also found support in overnight comments from San Francisco Fed J.Williams (2018 voter, hawkish), who said that a third rate hike this year looks ‘reasonable’ while he expects the Fed to start normalizing its balance sheet at some point later in the year.

Ahead in the session, FOMC’s L.Brainard (permanent voter, centrist) and Minneapolis Fed N.Kashkari (voter, dovish) are due to speak, keeping the interest on the buck.

US Dollar relevant levels

The index is gaining 0.03% at 95.84 facing the next up barrier at 96.25 (high Jul.5) seconded by 96.32 (high Jun.28) and finally 96.45 (21-day sma). On the other hand, a breach of 95.56 (low Jul.6) would open the door to 95.22 (2017 low Jun.30) and then 94.95 (low Sep.22 2016).