US Dollar up move lost vigour near 97.40

After hitting session tops in the 97.40 region, the US Dollar Index – which tracks the buck vs. its main competitors – has now receded to the 97.30/20 region.

US Dollar supported at 97.15

The index came under renewed selling pressure following the opening bell in Euroland on Wednesday, surrendering part of its initial gains and helping the risk-associated space to rebound from depressed levels.

Nothing out of the ordinary is happening around the buck so far this week, which keeps gravitating between US politics – which recent effervescence appears mitigated somewhat – and market chatter regarding a potential move by the Federal Reserve at its meeting next month.

In fact, according to Reuters’ FedWatch tool, the probability of higher rates in June is currently at 85.5%.

The choppiness around DXY is reflected in US yields, with the 10-year reference regaining the 2.23% level after falling below 2.21% on Tuesday.

In the US data space, only second-tier releases expected today: pending home sales and the Chicago PMI will precede de release of the Fed’s Beige Book.

US Dollar relevant levels

The index is up 0.03% at 97.25 and a breakout of 97.70 (high May 30) would open the door to 98.03 (20-day sma) and finally 99.30 (200-day sma). On the downside, the next support is located at 97.14 (low May 30) seconded by 96.81 (low May 25) and then 96.70 (2017 low May 23).