US Dollar off highs, sticks to gains around 100.50

The US Dollar Index - which measures the buck vs. its main rivals – is clinging to its daily gains vs. its peers around the 100.50 region.

US Dollar bid after data

The index is reverting five consecutive sessions with losses on Wednesday, climbing as high as the 100.90 area albeit losing some momentum soon afterwards.

USD met extra buying interest after US inflation figures gauged by the CPI rose at an annualized 2.1%, while Core prices rose 2.2% on a yearly basis, both readings matching consensus.

Further US results saw Industrial Production expanding more than initially forecasted 0.8% MoM in December and Capacity Utilization following suit, up to 75.5% vs. 75/3% expected.

On the opposite direction, the NAHB index failed to meet estimates for the current month, down to 67 from 69 and 70 forecasted.

Somewhat limiting USD upside, Dallas Fed Robert Kaplan said earlier today that a strong greenback remains a headwind for inflation.

In the meantime, DXY seems to have found decent support near the 100.00 handle, as the downside pressure following the unwinding of the Trump-rally appears alleviated ahead of Trump’s inauguration on Friday.

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).