US Dollar finds buyers near 97.00

The US Dollar Index – which gauges the buck vs. its main competitors – is trading on a better footing so far today, looking to regain the 97.00 handle and above.

US Dollar focus on Trump, data

The index remains under pressure in the area of multi-month lows around the 97.00 neighbourhood so far this week, always against the backdrop of rising uncertainty in the US political arena and with President Trump in centre stage later today, as he is expected to unveil his budget proposals for 2018.

After two consecutive sessions in the red territory, the buck seems in a better shape today although a catalyst for a more sustainable rebound and durable recovery still remains elusive.

Data wiswe in the US docket, Markit’s advanced Manufacturing PMI is due seconded by New Home Sales and the speech by Minneapolis Fed N.Kashkari (voter, dovish).

On the positioning front, USD is also under scrutiny as the speculative community has reduced its net long positions to the lowest since early October during the week ended on May 16 according to the latest CFTC report.

US Dollar relevant levels

The index is up 0.03% at 96.91 and a breakout of 97.25 (high May 22) would open the door to 97.97 (high May 18) and finally 98.52 (20-day sma). On the other hand, the next support lines up at 95.91 (low Nov.9 2016) followed by 94.95 (low Sep.22 2016) and finally 94.94 (low Sep.8 2016).