The greenback, measured by the US Dollar Index, stays under pressure during the first half of the week, now navigating the low-100.00s ahead of the opening bell in Europe.
US Dollar looks to data
The index stays close to the psychological support at 100.00 the figure today, trading in line with the generalized sideline sentiment and still unable to gather any upside traction despite recent comments by US Treasury Sec. S.Mnuchin.
In an interview on Monday, Mnuchin said that the tax reform will surely be delayed following the ‘trumpcare’ setback. Mnuchin also noted that the Dollar’s strength is a positive sign in the longer term, while in the shorter run it could hurt US exports sector.
USD has managed to revert the drop to fresh lows in the 99.90 region seen on Friday, although a sustainable recovery appears unlikely for the time being, amidst recent tepid results in the US docket, softer performance of US yields and some skepticism on the Fed’s ability to hike two more times this year.
In the data space, US Housing Starts and Building Permits are due seconded by Industrial Production and Capacity Utilization for the month of March.
US Dollar relevant levels
The index is up 0.01% at 100.21 and a break above 100.62 (55-day sma) would aim for 100.88 (61.8% Fibo of the March drop) and then 101.06 (100-day sma). On the flip side, the initial support aligns at 100.04 (38.2% Fibo of the March drop) followed by 99.91 (low Apr.17) and finally 99.51 (23.6% Fibo of the March drop).