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  • The index navigates a tight range around 97.30/40.
  • Yields of the 10-year note met resistance near 2.66%.
  • US Retail Sales surprised to the upside in January.

The greenback keeps the trade within a narrow range at the beginning of the week, hovering over the 97.30/40 band when tracked by the US Dollar Index (DXY) and in the wake of US data releases.

US Dollar Index paid little attention to data

The index has started the week on a negative footing, extending the leg lower after hitting fresh 2019 peaks in the 97.70/75 band last Thursday in response to the ECB dovish message.

The greenback paid little attention to today’s publications in the US calendar, where headline Retail Sales expanded at a monthly 0.2% and Core sales gained 0.9% inter-month, both readings surpassing previous estimates.

Moving forward, US inflation figures will be the salient event tomorrow, although the broader risk appetite trends will also be vigilant on the meaningful vote in the Brexit negotiations.

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 losing 0.07% at 97.29 facing the next support at 96.75 (21-day SMA) seconded by 96.33 (55-day SMA) and then 95.82 (low Feb.28). On the flip side, 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).