US Dollar deflates from highs, near 100.80 ahead of Yellen

The greenback – in terms of the US Dollar Index – is losing smalls in the European morning, retreating from tops above the 101.00 handle and currently hovering over the 100.80 area.

US Dollar all eyes on Yellen

The index is reverting a 3-session positive streak so far today, running out of some upside momentum after the recent failure to extend the breakout of 101.00 the figure on a more sustainable basis.

Despite the correction lower, USD has so far managed well to stay in the upper end of the recent range, all bolstered by the resurgence of the Trump-induced reflation/growth trade and rising expectations of a potential rate hike by the Federal Reserve at its June meeting.

Looking ahead, Richmond Fed J.Lacker (2018 voter, hawkish), Dallas Fed R.Kaplan (voter, centrist) and Atlanta Fed D.Lockhart (who will step down at the end of the month) area all due to speak later in the session, although the most significant event will be Chief Yellen’s semi-annual Humphrey Hawkins Testimony.

More from the US docket will include January’s Producer Prices and the Business Optimism index by NFIB.

US Dollar relevant levels

The index is losing 0.19% at 100.81 and a breach of 100.56 (low Feb.10) would aim for 100.34 (20-day sma) and then 100.03 (low Feb.8). On the other hand, the next resistance aligns at 101.11 (high Feb.13) ahead of 101.31 (55-day sma) and finally 101.71 (high Jan.19).