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  • The greenback alternates gains with losses in the 97.30/40 band.
  • Yields of the US 10-year yields still capped by 2.65%.
  • US Retail Sales next of relevance in the docket.

The US Dollar Index, which gauges the greenback vs. its main competitors, is trading within a tight range at the beginning of the week around the 97.40 region.

US Dollar Index looks to data

The index has started the week following the broad-based consolidative theme in the global markets, as market participants continue to adjust to Friday’s US labour market report.

It is worth recalling that the US economy added a meagre 20K jobs during February, although the jobless rate ticked lower and wage inflation pressure surprised to the upside.

On another front, nothing seems to be moving on the US-China trade dispute, where news went from the imminence of a deal to the current ‘radio silence’ in just over a week.

Data wise today, January’s Retail Sales are due seconded by remarks from Chief Powell at a conference in Washington.

What to look for around USD

The optimism around a positive outcome in the US-China trade front appears somewhat mitigated as of late, while there is no further news on the supposed meeting between Trump and Xi later in the month. Despite Payrolls were a fiasco when comes to job creation, the lower jobless rate and auspicious prints from wage inflation kept the upbeat sentiment almost intact around the buck. Investors, in the meantime, continue to scrutinize the probable change in the Fed’s rate path as well as any re-assessment of the ongoing QT.

US Dollar Index relevant levels

At the moment, the pair is gaining 0.04% at 97.40 and a break above at 97.71 (2019 high Mar.7) would open the door to 97.87 (monthly high Jun.20 2017) and finally 99.89 (monthly high May 11 2017). On the flip side, the next support lines up at 96.75 (21-day SMA) seconded by 96.33 (55-day SMA) and then 95.82 (low Feb.28).