US Dollar retakes 89.00 on US data, SOTU on sight

• CB’s consumer confidence surprised to the upside.
• DXY bounces off lows, back around 89.00.
• Trump’s SOTU speech, FOMC on top of agenda.

The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rivals, has rebounded from daily lows and is now gyrating around the key 89.00 handle.

US Dollar focused on Trump, FOMC

The index picked up some pace after US consumer confidence gauged by the Conference Board came in above expectations at 125.4 for the month of January, beating prior surveys and up from December’s 123.1.

Previously, the S&P/Case-Shiller Index also surprised to the upside, gaining 6.4% on a yearly basis during November.

The greenback will remain under the microscope ahead of the upcoming SOTU speech by President D.Trump (9PM ET) and the FOMC meeting (Wednesday). Markets expect immigration, trade and infrastructure to be among the top issues that Trump will speak about tonight.

US Dollar relevant levels

As of writing the index is losing 0.24% at 89.14 facing the immediate support at 88.42 (2018 low Jan.25) seconded by 87.64 (low Dec.16 2014) and finally 84.48 (low Oct.15 2014). On the other hand, a break above 90.70 (high Jan.22) would open the door to 90.98 (high Jan.18) and then 92.64 (high Jan.9).