US Dollar consolidates the upside above 89.00

• DXY moves further north of the 89.00 handle.
• Dip-buyers emerged around 88.40, multi-year lows.
• PCE, personal income/spending next on tap.

The greenback, tracked by the US Dollar Index (DXY), has started the week on a positive footing and is now extending the up move beyond the critical 89.00 handle ahead of key US data releases.

US Dollar looks to data, FOMC

The index is reverting Friday’s retreat and regained further upside traction after clearing the 89.00 hurdle on a more sustainable basis for the time being.

In fact, after dipping to fresh multi-year lows in the 88.40 region (Thursday), the buck managed to lure buyers in and stage a decent rebound back above 89.00 the figure. Negative sentiment in the risk-associated universe plus Trump’s pro-USD comments seems to be bolstering the corrective upside in USD.

Later in the NA session, December’s inflation figures measured by the PCE and personal income/spending will be the salient events today, ahead of the more relevant FOMC meeting (Wednesday) and non-farm payrolls (Friday).

US Dollar relevant levels

As of writing the index is gaining 0.16% at 89.24 and 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). On the downside, the immediate support lines up at 88.42 (2018 low Jan.25) seconded by 87.64 (low Dec.16 2014) and finally 84.48 (low Oct.15 2014).