FXStreet (Edinburgh) – The US Dollar Index, which gauges the greenback against a basket of its main rivals, is surrendering part of its recent gains and returned to the 96.80/75 band.

US Dollar attention to US data, minutes

The index has retaken part of last week’s deep sell off, although a break above the key area around 97.00 the figure continue to remain elusive for USD-bulls. Positive results from the US housing sector on Tuesday have given extra upside momentum to the dollar, although the sentiment seems to have faded somewhat after today’s opening bell in Euroland.

Next of relevance for the dollar will be July’s CPI figures and the FOMC minutes, all due later amidst increasing expectations of a Fed’s lift-off next month. Market consensus sees core consumer prices advancing at an annual pace of 1.8%, matching June’s reading.

US Dollar relevant levels

As of writing the index is down 0.25% at 96.79 facing the immediate support at 95.92 (low Aug.12) ahead of 95.63 (low Jul.13) and finally 95.46 (low Jul.10). On the upside, a breakout of 97.33 (high Aug.12) would aim for 97.59 (high Aug.11) and then 97.92 (high Aug.10).

The US Dollar Index, which gauges the greenback against a basket of its main rivals, is surrendering part of its recent gains and returned to the 96.80/75 band…

(Market News Provided by FXstreet)

By FXOpen