US Dollar sidelined around 99.30

The US Dollar Index – which gauges the buck vs. its main rivals – is trading on the defensive on Wednesday, attempting to consolidate around the 99.30 region.

US Dollar gains capped near 99.60

The index is reverting a 2-session positive streak so far today, finding quite a strong resistance in the boundaries of 99.60 after bottoming out near 98.30 on Monday, fresh YTD lows.

Positive Fedspeak, expectations of a rate hike by the Federal Reserve at the June meeting and auspicious data as of late (recall that Non-farm Payrolls surpassed estimates in April) have all contributed with the recent strong rebound in DXY.

The buck’s weekly bull run has been accompanied by a solid rebound of yields in the US money markets, testing fresh monthly lows on Tuesday just to deflate somewhat so far today.

Data wise in the US docket, Export/Import Price Index is due ahead of the EIA’s weekly report on US crude oil inventories and the speech by Boston Fed E.Rosengren (2019 voter, hawkish).

US Dollar relevant levels

The index is losing 0.13% at 99.32 and a break below 99.13 (200-day sma) would open the door to 99.05 (23.6% Fibo of the April-May drop) and then 98.96 (low May 9). On the upside, the next hurdle lines up at 99.56 (high May 9) ahead of 99.81 (50% Fibo of the April-May drop) and finally 99.94 (high Apr.21).