US Dollar in red near 95.60, focus on data

The greenback, in terms of the US Dollar Index, is prolonging Friday’s pullback around the 95.60 region ahead of US data releases.

US Dollar retreats from 96.50

The index has started the week on a negative footing today, as market participants continue to adjust to the disappointing results from US Retail Sales during July and dwindling expectations of a rate hike by the Fed in the near future.

Later in the NA session, second tier releases are expected in the US economy: NY Empire State manufacturing index, TIC Flows and the NAHB index, all amidst thin trade conditions and extreme low volatility.

Regarding positioning, speculative net longs in USD have been trimmed to 3-week lows in the week ended on August 9, according to the latest CFTC report.

US Dollar relevant levels

The index is losing 0.08% at 95.64 and a breakdown of 95.19 (low Aug.12) would open the door to 94.94 (low Aug.2) and then 94.24 (up trend off 2016 low at 91.88). On the other hand, the initial hurdle aligns at 96.50 (high Aug.5) followed by 97.05 (78.6% Fibo of July-August drop) and finally 97.62 (high Jul.25).