US Dollar corrects lower to 95.30, Fedspeak eyed

The greenback, tracked by the US Dollar Index, has opened the week on a soft note around the 95.30 region.

US Dollar focus on Fedspeak

After last Friday’s strong advance, the index has faded some of those gains and it has now returned to the current 95.30/25 band following the opening bell in Euroland.

Absent releases in the US economy today, the bulk of attention will shift to the scheduled speeches by Atlanta Fed D.Lockhart (non voter, dovish) and N.Kashkari (voter in 2017). However, the speech by L.Brainard (voter) will be the most salient point later in the NA session, as she is regarded as the most dovish FOMC member.

Market participants will closely follow Brainard’s speech on ‘Economic Outlook’ ahead of  the ‘blackout’ period, as her views could fall in line with recent hawkish comments by her peers, reinforcing the case for a rate hike in the near future and thus lending extra wings to USD.

US Dollar relevant levels

The index is retreating 0.07% at 95.27 facing the immediate support at 95.12 (20-day sma) followed by 94.73 (support line off 2016 low) and finally 94.05 (low Aug.18). On the upside, a breakout of 95.58 (high Sep.9) would open the door for a test of 95.85 (55-day sma) and finally 96.15 (200-day sma).