US Dollar targets 91.00, Powell reiterates view

• Fed’s Powell reiterates Tuesday’s statement at today’s testimony.
• DXY climbs closer to the key barrier at 91.00 the figure.
• US ISM manufacturing improved beyond consensus in January.

The greenback is extending further its march north today and is now trading at shouting distance from the key 91.00 milestone when gauged by the US Dollar Index (DXY).

US Dollar propped up by data, sentiment

The index is advancing for the third session in a row today, reverting the negative start of the week and approaching the 91.00 hurdle amidst quite a convincing change of heart from investors regarding the buck.

DXY is also finding support in the higher-than-expected ISM manufacturing for the month of January, coming in at 60.8. In addition, Initial Claims rose 210K on a weekly basis, the lowest level since 1969.

At today’s testimony, Powell suggested that extra gains in the labour market are possible without causing inflation, although he noted the absence of strong evidence of a decisive up move in wages.

Still in the US, New York Fed and permanent voter W.Dudley (centrist) is also due to speak.

US Dollar relevant levels

As of writing the index is up 0.28% at 90.86 facing the next up barrier at 91.00 (high Jan.18) ahead of 92.22 (100-day sma) and finally 92.64 (2018 high Jan.9). On the downside, a breakdown of 89.90 (10-day sma) would aim for 89.74 (21-day sma) and finally 89.51 (low Feb.26).