US Dollar weaker, breaches 101.00 ahead of Fedspeak

The selling pressure around the buck remains intact on Thursday, with the US Dollar Index (DXY) coming down to test sub-101.00 levels, or session lows.

US Dollar attention to data, Fedspeak

The index is now intensifying the downside below the key support at the 101.00 handle, as the Trump-rally continues to unwind following yesterday’s press conference by the US president-elect in New York.

Donald Trump disappointed expectations on Wednesday after he failed to give extra details on the potential economic policies under his presidency, resuming instead quite a belligerent tone, mainly against national intelligence agencies.

In the meantime, USD has retreated to fresh 4-week lows in the 100.80 area ahead of second-tier releases in the US docket, followed by more relevant speeches by Chicago Fed C.Evans (voter, dovish), Philly Fed P.Harker (voter, hawkish), Atlanta Fed D.Lockhart (centrist), St.Louis Fed J.Bullard (centrist) and Dallas Fed R.Kaplan (voter, hawkish). Chairwoman J.Yellen will also hold a speech today, although it won’t be on monetary policy.

US Dollar relevant levels

The index is gaining 0.22% at 101.63 facing the immediate support at 100.75 (low dec.14) followed by 99.49 (low Dec.8) and then 98.78 (100-day sma). On the flip side, a breakout of 102.53 (20-day sma) would target 102.96 (high Jan.11) en route to 103.81 (2017 high Jan.4).