US Dollar still strong, around 100.50

After climbing as high as the vicinity of 100.70 in early trade, the US Dollar Index is now looking to consolidate the upside in the mid-100.00s.

US Dollar bid above 100.00

In the meantime, the index keeps the February rally alive, advancing since the very start of the month and managing well to leave behind 3-month lows in the 99.20 region (February 2).

Today’s upbeat sentiment around the buck is accompanied by rising US yields following yesterday’s sharp pullback, although the ongoing up move seems to lack of sustainability for the time being.

Somewhat limiting the upside, Minneapolis Fed Neil Kashkari (voter, centrist) said there are still no signs of wage inflation, adding that the strong USD should help containing inflation. Additionally, he noted that fiscal policy could be good for growth although there is yet uncertainty around this.

On the data front, US JOLTs Job Openings came in below estimates at just above 5.5 million in December. On the bright side, the Economic Optimism index measured by IBD/TIPP surpassed consensus and December’s trade deficit shrunk to $44.3 billion.

US Dollar relevant levels

The index is gaining 0.62% at 100.46 facing the next resistance at 100.72 (high Feb.7) followed by 101.02 (high Jan.30) and finally 101.39 (55-day sma). On the other hand, a breach of 99.91 (low Feb.7) would open the door to 99.67 (100-day sma) and then 99.19 (low Feb.2).