US Dollar off session highs, near 100.50 ahead of US CPI

The greenback – tracked by the US Dollar Index (DXY) – continues in ‘recovery-mode’ around daily peaks in the 100.70/80 band.

US Dollar focus on CPI, Fedspeak

The index is trading in the red territory for the fourth consecutive week so far, as recent comments by US president-elect Donald Trump citing the Dollar looks too strong have intensified the unwinding of long positions in the buck.

Positive results in the US docket as of late plus USD-supportive Fedspeak have done nothing to mitigate the selling sentiment around the Dollar, which seems to have found some decent support in the vicinity of the critical 100.00 handle for the time being.

Later in the NA session, December’s inflation figures tracked by the CPI will grab all the attention ahead of Industrial Production, the NAHB index and the Fed’s Beige Book. In addition, Dallas Fed Robert Kaplan (voter, hawkish), Minneapolis Fed Neil Kashkari (voter, centrist) and Chairwoman Janet Yellen are all due to speak later in the day.

US Dollar relevant levels

The index is gaining 0.29% at 100.55 facing the immediate resistance at 101.05 (55-day sma) ahead of 101.72 (high Jan.16) and then 102.18 (20-day sma). 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).