FXStreet (Edinburgh) – The bid tone remains unabated around the greenback today, with the US Dollar Index now looking to consolidate the break above the 97.00 barrier.
US Dollar Index boosted by Yellen
The hawkish tone by Chair Yellen at her Semi Annual Testimony in Capitol Hill has given the USD fresh legs, pushing the index to fresh tops around 97.30. J.Yellen has emphasized that economic conditions seem to be on their way to prompt a rate hike at some point later in the year, while at the same time she acknowledged that there is still some slack in the US labour market.
In addition, the US docket has surprised investors to the upside, with Industrial Production, Capacity Utilization, Producer Prices and the empire State index all coming in above expectations and collaborating at the same time with today’s upbeat sentiment around the dollar.
US Dollar Index relevant levels
As of writing the index is advancing 0.52% at 97.14 with the next hurdle at 97.31 (high Jul.15) followed by 97.34 (high Jun.5) and then 97.76 (high Jun.1). On the downside, a break below 95.08 (low Jun.26) would aim for 94.86 (low Jun.30) and finally 94.72 (low Jun.29).
(Market News Provided by FXstreet)