US Dollar firmer, albeit off highs near 101.70

The greenback – tracked by the US Dollar Index – has started the week on the firmer footing, reclaiming the 101.70 region although easing some pips afterwards.

US Dollar focus on data

The index has recovered the smile on Monday, posting moderate gains after three consecutive sessions with losses against the backdrop of a pick up in the global risk aversion.

The demand for the Dollar has gathered traction in response to heightened risks on the likeliness of a ‘hard Brexit’ outcome in the UK after PM Theresa May is expected to intensify her stance of a ‘clear Brexit’ at her speech on Tuesday.

Markets in the US will remain closed today due to the MLT holiday, while the docket is expected to grow in importance in the upcoming sessions, with CPI figures, Fedspeak and Trump’s inauguration all expected to keep the attention on the buck.

Last week’s selling pressure around USD has been reflected in the latest CFTC report, with speculative longs have retreated to 2-week lows during the week ended on January 10.

US Dollar relevant levels

The index is gaining 0.44% at 101.62 facing the immediate resistance at 102.45 (20-day sma) ahead of 102.96 (high Jan.11) en route to 103.81 (2017 high Jan.4). On the flip side, a breakdown of 100.98 (55-day sma) would open the door to 100.70 (low Jan.12) and finally 99.49 (low Dec.8).