US Dollar weaker, puts 101.00 to the test

The greenback – tracked by the US Dollar Index (DXY) – has eroded initial gains and is now challenging the critical support at 101.00 the figure.

US Dollar upside stalled around 101.20, Yellen eyed

The index is now giving away initial gains and is posting marginal losses for the day as market participants are waiting for the speech by Chief Janet Yellen on the economic outlook at the University of Michigan due later after the closing bell in Wall St.

Yields in the US money markets have been sustaining the up move in the buck since Friday despite the US economy created less jobs than initially forecasted during March, as per the latest Payrolls figures (98K).

Other than US yields, supportive Fedspeak and a repetition of a dovish message from both M.Draghi last week and V.Constancio earlier today have collaborated with the buck’s move.

US Dollar relevant levels

The index is down 0.13% at 100.95 facing the initial support at 100.88 (61.8% Fibo of the March drop) followed by 100.62 (55-day sma) and finally 100.18 (20-days sma). On the other hand, a break above 101.22 (high Apr.10) would aim for 101.48 (78.6% Fibo of the March drop) and then 101.66 (high Mar.14).