DXY testing highs above 96.40

FXStreet (Edinburgh) - The greenback, in terms of the US dollar Index, keeps the trade within a narrow range, albeit it manages to challenge session tops beyond 96.40.

DXY propped up by Fischer

The index remains well bid following last Friday’s better-than-expected inflation figures in the US economy, although today’s inactivity in Euroland and US leave it in a tight range above the 96.00 handle.

The dollar is getting some extra support from the speech by Fed’s Vice Chairman Stanley Fischer, stating that the debate around the rates lift-off contemplates an ‘early move and slow follow through’ or ‘late and steep’.

DXY relevant levels

The index is now advancing 0.43% at 96.42 and a breakout of 96.47 (high May 25) would open the door to 96.93 (high Apr.28) and then 97.27 (high Apr.27). On the downside, the immediate support lines up at 94.82 (low May 22) followed by 94.08 (low May 19) and finally 93.27 (low May 18).

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As most crosses in the FX market, GBP/USD is going through a consolidation phase on Monday amid quiet, thinned-holiday trading in observance of the Memorial Day in US.
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