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US Dollar remains weak, around 92.80

  • USD appears capped by the 93.00 handle.
  • DXY found support in the mid-92.00s so far, Thursday’s low.
  • Fedspeak in the limelight throughout the session.

The greenback, in terms of the US Dollar Index (DXY), has faded the bullish attempt to retake the 93.00 limestone and has now receded to the vicinity of the 92.85.80 band following the opening bell in Euroland on Friday.

US Dollar focused on Fedspeak

The index is down for the third consecutive session at the end of the week, trading in the boundaries of 93.00 the figure and looking to regain some traction amidst uncertainty around the US tax reform and headlines around President Trump.

In fact, the NYT published yesterday that the White House is planning to replace current Secretary of State Rex Tillerson with Mike Pompeo, the CIA Director. In turn, Mike Pompeo could be replaced by Senator from Arkansas Tom Cotton. However, there are still plenty of speculations and lack of details around the subject, which leaves the buck somewhat vulnerable for the time being.

Also weighing on USD, the US Senate postponed its vote of the Republican tax bill on Thursday on deficit issues. The vote is expected to resume this morning.

In the US data space, October’s ISM manufacturing will grab all the attention along with speeches by St. Louis Fed J.Bullard (2019 voter, centrist), Dallas Fed R.Kaplan (voter, hawkish) and Philly Fed P.Harker (voter, hawkish).

US Dollar relevant levels

As of writing the index is losing 0.17% at 92.85 facing the next support at 92.50 (low Nov.30) seconded by 91.78 (low Sep.22) and then 91.53 (low Sep.20). On the upside, a break above 93.25 (10-day sma) would open the door to 93.50 (high Nov.30) and finally 94.03 (23.6% Fibo of 2017 drop).

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