Dollar Index slips below 89.50, USD awaits Trump's State of the Union Address, Fed Funds Rate

• USD Index retreats from recent high

• Trump Speech, Fed rates to determine risk appetite

The Dollar Index has slipped from its recent high of 89.62, currently trading just underneath 89.50, suggesting a loss of momentum in the Greenback's recent bullish move which saw the US currency halt its steady fall in recent weeks.

USD pairs are likely to be influenced by President Donald Trump's State of the Union Address tomorrow, to be followed later in the day by US crude oil inventories, a statement from the FOMC, and the Federal Reserve's Fed Funds Rate, which market analysts expect to remain below 1.50%, with the Fed expected to favour a March rate increase.

Lack of confidence has marred the US Dollar lately, with the currency tumbling against most major trading pairs for several weeks, and recent comments from Secretary of the Treasury Steven Mnuchin accidentally verbally talking down the Greenback while at Davos, touting the positive effects of a weakened US Dollar. Following lashback from heads of various global financial organizations, including both the IMF and ECB, President Trump undermined his administration's previous comments, stating he would prefer to see a strong dollar.

Trumps State of the Union Address is scheduled for tomorrow at 2:00 am GMT, with oil inventories at 3:30 pm, and Fed Funds Rate at 7:00.

USD technicals

USD index traders will note the swing resistance priced in at 89.52, which the Dollar will have to overcome selling pressure or risk being sent back to 88.60.