US Dollar keeps pushing higher, in tops near 93.70
|The US Dollar index, which gauges the buck vs. its main rival currencies, is extending the advance to fresh 2-day tops in the 93.70 area.
US Dollar underpinned near 93.00
The index found dip-buyers around Thursday’s lows in the 93.00 neighbourhood, prompting the greenback to return to the positive territory and move to fresh 2-day highs in the 93.70 region.
Optimism around the buck rose after the Senate approved the Republicans-backed budget late on Thursday, bringing the implementation of the Trump’s tax reform even closer.
Additionally, the upside momentum around the US money markets stays everything but abated and is now lifting yields of the 10-year benchmark to fresh multi-day tops just below the 2.39% handle.
Collaborating with the up move in USD, expectations of further tightening by the Federal Reserve via rate hikes remain on the rise and, according to CME Group’s FedWatch tool, the probability of higher rates in December stays above 90% based on Fed Funds futures prices.
Further out, investors and the greenback remain anxious on the upcoming announcement by President D.Trump of the next Fed Chief, with (pro-USD) candidate J.Taylor as the current front-runner vs. FOMC’s J.Powell and former FOMC governor K.Warsh.
In the US data space, existing home sales expanded 0.7% in September, or to 5.39 million units, surpassing prior surveys.
US Dollar relevant levels
As of writing the index is gaining 0.55% at 93.64 and a break above 93.80 (high Oct.16) would open the door to 94.03 (23.96% Fibo of the 2017 drop) and finally 94.16 (100-day sma). On the flip side, the immediate support aligns at 93.06 (low Oct.19) seconded by 92.93 (55-day sma) and then 92.75 (low Oct.13).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.