US Dollar Bounces From Support Ahead Of Busy Economic Calendar

US DOLLAR BOUNCES FROM SUPPORT TO START BIG WEEK

The US Dollar has started off the week by making a quick move down towards last week’s low, which came in at the 96.30 level in DXY. That low printed on Wednesday of last week, but buyers were unable to post much of an upward advance and another lower-high came-in around a prior area of support around the 96.68 level.

A number of USD drivers are on this week’s calendar, including the twice-annual Humphrey Hawkins testimony in which FOMC Chair, Jerome Powell, will address each arm of Congress. The big question around the US currency is whether USD bulls continue to take a break from the post-January FOMC bullish run; or whether buyers show back up to drive-up to resistance around 97.30 or, perhaps even the 97.71 level that marks the November/December double-top.

US DOLLAR HOURLY PRICE CHART

(Click on image to enlarge)

us dollar usd hourly price chart

Chart prepared by James Stanley

As markets open this week, a number of drivers remain on the economic calendar, particularly around the United States. Tuesday and Wednesday of this week bring the twice-annual Humphrey Hawkins testimony with FOMC Chair, Jerome Powell. Mr. Powell will speak to the Senate Finance Committee on Tuesday and the House Financial Services Committee on Wednesday. Each day will begin with prepared remarks, at which point the floor will be opened to questions, and these questions can be very wide ranging with a variety of economic implications. Also, this week brings the Trump-Kim Summit in Hanoi, Vietnam, set to take place on Wednesday and Thursday. The result of this meeting could have trade war implications which can, in turn, create market volatility. Outside of the US, BoE Governor Mark Carney will address Parliament tomorrow morning at 5:00 AM ET, Canadian CPI numbers are released on Wednesday morning, and German CPI is released the morning after. The week closes with a batch of drivers on Friday morning, as German unemployment and Euro-Zone CPI are released at 3:55 and 5:00 AM ET, respectively, followed by Canadian GDP and US PCE.

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