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  • The index advances further north of the 97.00 milestone.
  • Yields of the US 10-year noted clinch the 3.06% area today.
  • Fedspeak, S&P index next of relevance in the US docket.

The greenback, tracked by the US Dollar Index (DXY), keeps the bid tone intact during the first half of the week and is now navigating levels above the 97.00 handle.

US Dollar looks to Fedspeak, data, trade

The index is up for the third session in a row on Tuesday, extending the up move beyond the key 97.00 barrier following last week’s bullish ‘outside day’ (November 20).

The buck picked up extra pace following President Trump’s comments over the likeliness of further tariffs on Chinese products just days before his meeting with China’s Xi Jinping at the G20 gathering in Argentina later in the week.

In addition, Brexit headlines and Italian politics continue to weigh on the sentiment surrounding the risk-associated universe, in turn sustaining the up move in the index.

Later in the session, the greenback should stay under scrutiny in light of the speeches by VP R.Clarida (permanent voter, dovish), KC Fed E.George (2019 voter, hawkish), Chicago Fed C.Evans (non voter, centrist) and Atlanta Fed R.Bostic (voter, centrist).

In the calendar, the S&P/Case-Shiller Index is due along with the final gauge of the Consumer Confidence by the Conference Board.

US Dollar Index relevant levels

As of writing the index is gaining 0.06% at 97.14 facing the next hurdle at 97.28 (high Nov.27) seconded by 97.69 (2018 high Nov.12) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop). On the flip side, a break below 96.75 (21-day SMA) would open the door to 96.32 (low Nov.22) and finally 96.04 (low Nov.20).