US Dollar a tad firmer, looks to regain 97.00

The greenback – measured by the US Dollar Index – is posting moderate gains on Thursday and looking to retake the key 97.00 handle.

US Dollar focus on data

The index appears to have found quite decent support around yesterday’s lows near 96.80 and is now attempting to gather further traction with the immediate target on the 97.00 barrier.

USD is recovering some ground after two consecutive daily pullbacks following the rejection from weekly peaks in the vicinity of 97.70 (Wednesday), all amidst the usual adjustment to month-end flows and some pick up in the demand for the riskier assets.

The buck should play a big role today in light of the publication of May’s ADP report (185K exp.) and the always relevant ISM Manufacturing (54.5 exp.). In addition, FOMC’s J.Powell (permanent voter, centrist) is due to speak.

US Dollar relevant levels

The index is up 0.09% at 96.99 and a breakout of 97.42 (high may 31) would open the door to 97.70 (high May 30) and then 97.93 (20-day sma). On the downside, the next support is located at 96.5 (low Jun.1) seconded by 96.80 (low May 31) and finally 96.70 (2017 low May 23).