US Dollar losing the grip, testing 101.00 ahead of US GDP, Trump

The greenback – in terms of the US Dollar Index – is now trading on a soft note, coming down to test the 101.00 neighbourhood ahead of the opening bell in Europe.

US Dollar attention to Trump, data

The index managed to bounce off yesterday’s drop to the 100.70/65 band, regaining the critical 101.00 barrier and probing highs in the 101.20 region. However, the up move lacked of follow through, prompting the current leg lower where some decent support seems to have emerged in the boundaries of 101.00 the figure.

It will be a key day for the buck in light of significant releases in the US docket and the SOTU speech by President D.Trump. Market participants have been permanently disappointed by Trump and his reluctance to give further details on his potential economic measures, particularly on the fiscal side, all echoing in the recent choppiness around the US Dollar.

Data wise in the US, a revision of GDP figures expects the economy to expand at an annualized 2.1% in Q4, while further releases include the S&P/Case-Shiller Index, Trade Balance results, Chicago PMI and CB’s Consumer Confidence, all along with speeches by Philly Fed P.Harker (voter, hawkish) and San Francisco Fed J.Williams (2018 voter, neutral).

US Dollar relevant levels

The index is retreating 0.09% at 101.05 and a break below 100.68 (low Feb.27) would open the door to 100.64 (low Feb.24) and then 100.45 (100-day sma). On the other hand, the next up barrier aligns at 101.28 (hhigh Feb.27) followed by 101.34 (55-day sma) and finally 101.75 (high Feb.15).