US Dollar flirting with highs near 101.30

The greenback – tracked by the US Dollar Index – has gathered further upside traction on Tuesday, currently challenging session highs in the 101.30 area.

US Dollar focus on Fedspeak

The renewed buying interest around the buck is pushing the index to fresh tops further north of the 101.00 handle during the first half of the week boosted by expectations of a potential Fed move at the March meeting.

US yields and appetite for the buck have risen during overnight trade after Philly Fed P.Harker (voter, hawkish) said in an interview with Market News International that he favours a rate hike as soon as next month as long as inflation results accompany.

Later in the session, the attention will be on the speeches by Philly Fed P.Harker (voter, hawkish), Minneapolis Fed N.Kashkari (voter, neutral) and San Francisco Fed J.Williams (2018 voter, neutral), ahead of the key FOMC minutes due on Wednesday.

In the data space, Markit’s advanced Manufacturing and Services PMIs are only due for the current month.

US Dollar relevant levels

The index is gaining 0.34% at 101.26 facing the next resistance at 101.75 (high Feb.15) ahead of 101.95 (23.6% Fibo of the November-January up move) and finally 10296 (low Jan.11). On the flip side, a break below 100.99 (high Feb.20) would aim for 100.44 (20-day sma) and then 100.40 (low Feb.16).