US Dollar deflates from highs, back near 97.40

The greenback, in terms of the US Dollar Index (DXY), is struggling for direction in the 97.40 region so far early in the European morning.

US Dollar gains capped near 97.50

The index is looking to extend its upbeat mood for the third session in a row today amidst a deteriorated scenario in the risk-associated space in response to the recent slump in crude oil prices.

However, gains further north of the 97.50 area appears difficult for the time being, while recent USD-supportive Fedspeak seems to have been insufficient to lift the buck higher.

It is worth recalling that NY Fed W.Dudley (permanent voter) emphasized on Monday the good shape of the US economy and argued against slowing the pace of tightening by the Fed. In the same line, Boston Fed E.Rosengren (2019 voter) noted that low interest rates pose financial stability risks.

Furthermore, (freshly hawk-turned-dove?) Dallas Fed R.Kaplan (voter) prompted for caution when comes to further rate hikes in light of the recent lower-than-expected inflation figures.

US Dollar relevant levels

The index is gaining 0.02% at 97.42 facing the next hurdle at 97.56 (high Jun.15) followed by 97.63 (38.2% Fibo of the May-June drop) and then 98.04 (50% Fibo of the May-June drop). On the flip side, a breach of 96.31 (2017 low Jun.14) would target 95.91 (low Nov.9 2016) and finally 94.95 (low Sep.22 2016).