US Dollar a tad firmer near 93.40, Fedspeak, ECB on sight

Measured by the US Dollar Index (DXY), the buck is advancing marginally on Thursday, currently testing the area of 93.30/40.

US Dollar focus on ECB, Fed-speakers

After testing multi-week tops near 94.00 the figure earlier in the week, sellers stepped in and drove the index lower to the current 93.30/40, where it is now looking to stabilize.

Market participants (and the buck) remain somewhat optimist regarding the likelihood that the long-waited tax reform plan proposed by the Trump administration could pass legislation by end of 2017, although other issues such as the debt-ceiling and ‘Trumpcare’ still remain a source of potential weakness for the greenback.

Further out, investors now seem more concerned over the successor of Chair J.Yellen, with former FOMC Governor K.Warsh and current FOMC member J.Powell being the favourite candidates.

In the US data space, weekly initial claims are due later seconded by factory orders for the month of August. In addition, FOMC’s J.Powell, San Francisco Fed J.Williams (2018 voter, centrist), Philly Fed P.Harket (voter, hawkish) and KC Fed E.George (2019 voter, hawkish) are all due to speak.

US Dollar relevant levels

As of writing the index is gaining 0.04% at 93.35 facing the initial hurdle at 93.91 (high Oct.2) followed by 94.03 (23.6% Fibo of the 2017 drop) and finally 94.14 (high Aug.16). On the downside, a break below 93.15 (10-day sma) would open the door to 92.94 (55-day sma) and then 92.47 (low Sep.20).