US Dollar Index parked around 98.30, looks to trade
|- DXY remains in the area of weekly highs near 98.30/40.
- US-China trade remains in the limelight.
- US markets are closed due to Thanksgiving Day holiday.
The greenback, in terms of the US Dollar Index (DXY), is clinging to the weekly gains in the 98.30/40 band.
US Dollar Index focused on trade
The index is so far managing well to keep business in the area of multi-week highs around 98.40, always bolstered by positive speculations on a US-China trade deal and auspicious results in the US docket.
Despite markets remain optimistic regarding an imminent deal, some doubts emerged as of late after President Trump signed the Honk Kong Humans Right Bill, which increased the effervescence in the Chinese side.
Further support for the buck came in after advanced Q3 GDP figures, headline PCE and Durable Goods Orders surprised markets to the upside on Wednesday, also motivating US yields to rebound and lifting stock to fresh record highs.
What to look for around USD
The index keeps the topside well and sound so far this week amidst usual rhetoric on the trade front. In the meantime, investors keep monitoring US fundamentals amidst the ‘wait-and-see’ stance from the Fed. On the US political scenario, the effervescence around President Trump’s impeachment process seems to be dissipating with the day. On the broader view, however, the outlook on the greenback still looks constructive on the back of a cautious Fed vs. the broad-based dovish stance from its G10 peers, the dollar’s safe haven appeal and the status of ‘global reserve currency’.
US Dollar Index relevant levels
At the moment, the pair is advancing 0.01% at 98.33 and a breakout of 98.45 (monthly high Nov.13) would open the door to 99.25 (high Oct.8) and then 99.67 (2019 high Oct.1). On the other hand, the next support lines up at 98.09 (100-day SMA) seconded by 97.68 (low Nov.18) and finally 97.60 (200-day SMA).
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