US Dollar in highs near 101.70 post-data
|The US Dollar Index – which gauges the buck vs. its main rivals – continues to push higher on Friday, testing fresh tops near 101.70 following upbeat US data.
US Dollar bid after data
The index met further upside pressure after the advanced print of the Reuters/Michigan index showed US Consumer Sentiment is expected to rise to 98 for the current month, or 11-year highs, beating initial estimates at 94.5 and up from November’s 93.8.
The results added to the already bid tone surrounding the dollar, especially since the ECB announced further stimulus at its meeting yesterday.
The index has thus managed to revert the weakness seen during the first sessions amidst quite a volatile week and is now on its way to close the week in the positive territory.
Looking ahead, the FOMC meeting on December 14 will be the salient event next week, where the probability of a rate hike is just below 95% according to CME Group’s FedWatch tool.
Banning any surprise on Wednesday, market participants will closely follow the Fed’s statement regarding the future steps on monetary policy, particularly under Trump’s presidency and against the backdrop of rising prospects of higher inflation.
US Dollar relevant levels
The index is advancing 0.59% at 101.71 and a breakout of 101.80 (high Dec.5) would open the door to 101.88 (high Nov.30) and finally 102.12 (2016 high Nov.24). On the other hand, the next support aligns at 100.97 (20-day sma) followed by 99.87 (low Dec.5) and finally 99.49 (low Dec.8).
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