US Dollar under pressure near 93.10 ahead of Yellen

The US Dollar Index – which tracks the buck vs. its main competitors – is holding on to levels above the 93.00 handle on Friday, posting marginal losses for the day.

US Dollar offered ahead of Jackson Hole

Choppy week for the index so far, with gains so far capped around 93.60/65 and decent contention emerging in the 93.00 neighbourhood.

USD should stay under scrutiny later in the session, as Chairwoman J.Yellen is due to speak at the Jackson Hole Symposium. Market expectations are divided between those seen Yellen reiterating the recent tone and others looking for some hawkish surprise regarding the timing of the Fed’s reduction of the balance sheet and further tightening.

In addition, Dallas Fed R.Kaplan (voter, hawkish) sees that inflation pressures are gradually moving, while he noted that another hike remains feasible depending on the performance of consumer prices.

Previously, Cleveland Fed L.Mester (2018 voter, hawkish) argued that the Fed must act pre-emptively, supporting at the same time gradual cuts to current accommodation.

US Dollar relevant levels

As of writing the index is losing 0.11% at 93.13 facing the immediate support at 93.00 (low Aug.21) seconded by 92.93 (low Aug.11) and then 92.55 (2017 low Aug.2). On the other hand, a breakout of 93.42 (10-day sma) would open the door to 93.63 (high Aug.23) and finally 94.14 (high Aug.16).