US Dollar erases gains, slips back to 94.60

The US Dollar Index, which gauges the buck vs. its main competitors, continues to give away initial gains and is now hovering over the 94.60 handle.

US Dollar gains limited around 95.00

Sellers seem to remain around USD for the time being, forcing the index to retrace the earlier uptick to the boundaries of 95.00 the figure amidst marginal volatility and a buying bias still favouring the buck.

Recent Fedspeak as well as auspicious comments by FOMC’s VP S.Fischer on Sunday prompted investors to start contemplating the likeliness of a Fed’s rate hike as soon as next month, giving extra wings to the greenback.

Looking ahead, Tuesday’s US docket will see New Home Sales along with the advance Manufacturing PMI tracked by Markit for the month of August, Existing Home Sales (Wednesday), Durable Goods Orders (Thursday) and Chief Yellen’s speech and flash Q2 GDP figures on Friday.

US Dollar relevant levels

The index is gaining 0.08% at 94.58 and a surpass of 95.11 (100-day sma) would open the door to 95.33 (50% Fibo of June-July up move) and finally 96.50 (high Aug.5). On the flip side, the immediate support lines up at 94.05 (low Aug.18) followed by 93.03 (low Jun.23) and then 91.88 (2016 low May 3).