US Dollar trims losses, back near 100.30

The greenback, in terms of the US Dollar Index, has managed to bounce off session lows and is now back near 100.40.

US Dollar still under pressure on ‘Trumponomics’

The index has found quite a strong support in the 100.00 neighbourhood for the time being, with occasional dips below the 100.00 handle being short-lived.

USD met increasing selling pressure in recent weeks, particularly after President D.Trump noted that the strong Dollar represents a drag for the export sector, weighing on the previous reflation trade that pushed DXY to fresh 14-year tops in early January.

However, the buck continues to show some reluctance in retreating further, as the promised extra fiscal stimulus under Trump’s administration should push consumer prices higher while prompting the Federal Reserve to tighten its policy at a faster pace.

Nothing worth mentioning data wise in the US docket today, with only the weekly report on crude inventories by the DoE expected later in the NA session.

The renewed offered bias around USD is reflected in the speculative positioning, as net longs have retreated to levels last since in late November on the week to January 17 and according to the latest CFTC report.

US Dollar relevant levels

The index is gaining 0.02% at 100.29 and a breakout of 100.39 (high Jan.24) would target 100.75 (high Jan.23) en route to 101.33 (55-day sma). On the downside, the immediate support aligns at 99.89 (low Jan.24) followed by 99.49 (low Dec.8) and then 99.25 (100-day sma).