US Dollar flirting with 2017 lows, around 98.60

The greenback, when tracked by the US Dollar Index, is trading almost unchanged at the end of the week around the 98.60 area, closer to YTD lows.

US Dollar looks to NFP

The index seems to have stabilized after Thursday’s sharp sell off to the boundaries of 98.50, where sits the 2017 low seen in late April.

The greenback plummeted after House Republican narrowly passed the American Health Care Act (known as ‘Trumpcare’) yesterday, giving green light to the process to repeal and replace the Affordable Care Act (‘Obamacare’), one of the promises made by President D.Trump.

USD has quickly abandoned the area of daily highs above the 99.00 handle reached amidst rising optimism following the FOMC meeting on Wednesday, rapidly slipping back to the mid-98.00s and once again breaching the critical 12-month support line.

Later in the NA session, the buck will remain in centre stage in light of the release of April’s Non-farm Payrolls, with consensus expecting the economy to have added 180K jobs during last month.

In addition, Chief J.Yellen and Vice Chair S.Fischer are due to speak along with Sna Francisco Fed J.Williams (2018 voter, hawkish) and Boston Fed E.Rosegren (2019 voter, hawkish).

US Dollar relevant levels

The index is gaining 0.01% at 98.62 facing the next hurdle at 99.01 (12-month support line) ahead of 99.08 (200-day sma) and finally 99.34 (high May 4). On the flip side, a break below 98.56 (2017 low Apr.25) would aim for 96.94 (low Nov.4 2016) and then 95.91 (low Nov.9 2016).