US Dollar stays firm near 92.50 ahead of Yellen

The US Dollar Index (DXY) – which tracks the buck vs. a basket of its main rival currencies – is extending the upbeat sentiment towards the 92.50/60 band.

US Dollar now looks to Fedspeak

The index is advancing for the second straight session so far on Tuesday, mainly propped up by a persistent sell off around EUR, while there is no fresh news from the US political scenario.

However, USD should stay under the microscope in light of the recent verbal escalation between the US and North Korea, which prompted an initial and ephemeral pick up in the demand for safe havens.

In fact, the buck is challenging multi-day tops around 92.60 while market participants await further details on inflation and next steps on monetary policy by the upcoming speeches by Chairwoman J.Yellen, Cleveland Fed L.Mester (2018 voter, hawkish), FOMC’s L.Brainard (permanent voter, dovish) and Atlanta Fed R.Bostic (2018 voter).

Extra publications today in the US docket will include new home sales for the month of August and the Conference Board’s gauge of consumer confidence.

US Dollar relevant levels

As of writing the index is gaining 0.04% at 92.58 and a break above 93.15 (55-day sma) would expose 93.35 (high Aug.31) and then 94.03 (23.6% Fibo of the 2017 drop). On the other hand, the immediate support lines up at 92.26 (10-day sma) seconded by 91.61 (low Sep.20) and finally 91.01 (2017 low Sep.8).