US Dollar deflates to lows near 98.70, US GDP on sight
|The US Dollar Index, which gauges the buck vs. its main rivals, is trading on a softer fashion at the end of the week, currently testing lows in the vicinity of 98.70.
US Dollar focus on US GDP
Despite the current leg lower, the index is extending its positive streak for the fifth week so far today, including a test of fresh 9-month peaks just above the 99.00 handle on Tuesday.
Increasing bets of a Fed’s rate hike likely to be announced at the December meeting continue to sustain the USD-rally. In that direction, CME Group’s FedWatch tool now sees the probability of such an event at 72% based on Fed Funds futures prices.
Later in the session, the greenback will grab all the attention in light of the release of the advanced US GDP figures for the third quarter, expected to expand at an annualized 2.5%, while the final print of the Reuters/Michigan index is seen up a tad to 88.1 for the current month.
Yields in the US money markets keep the weekly rally well and sound so far today, with the 10-year benchmark navigating 5-month tops above 1.86%.
US Dollar relevant levels
The index is losing 0.14% at 98.78 and a breakdown of 98.31 (low Oct.26) would aim for 97.69 (20-day sma) and finally 95.86 (200-day sma). On the other hand, the next hurdle is located at 99.09 (high Oct.25) followed by 99.95 (high Jan.21) and then 100.60 (high Dec.3).
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