US Dollar trims gains, sticks to 93.00

The US Dollar Index (DXY), which tracks the buck vs. its main rivals, has given away its initial gains and is now hovering over the 93.15/10 area, neutral for the day so far.

US Dollar focus on Jackson Hole

The index has faded the initial spike to daily tops near 93.40, keeping the trade within the recent range and finding decent support in the 93.00 neighborhood, or weekly lows.

Extra selling pressure also came in after existing home sales missed expectations in July, dropping to 5.44 million units, or contracting 1.3% on a monthly basis. Earlier in the day, initial claims rose to 234K WoW, bettering initial estimates.

Further news around the buck came from earlier comments by KC Fed E.George, who still sees chances of another rate hike by the Fed later in the year.

Looking ahead, the speech by Chief Yellen at the Jackson Hole Symposium on Friday should grab all the attention, with any hints on the Fed’s balance sheet reduction on top of investors’ agenda.

US Dollar relevant levels

As of writing the index is gaining 0.04% at 93.18 and a breakout of 94.14 (high Aug.16) would aim for 95.00 (55-day sma) and finally 95.21 (23.6% Fibo of the 2017 drop). On the flip side, the next support emerges at 93.00 (low Aug.21) seconded by 92.93 (low Aug.11) and then 92.55 (2017 low Aug.2).