- DXY stays buoyant above 93.60.
- US data came in stronger than expected.
- Attention now shifted to payrolls (Friday).
The greenback, gauged by the US Dollar Index, remains on the positive ground so far today, extending the upside momentum to the 93.70 region.
US Dollar now looks to payrolls
The rally in the buck stays supported by rising optimism over the US tax reform bill, which could be implemented at some point before Christmas following the recent vote at the Senate.
Curiously, the solid march north of the greenback has been against the backdrop of declining yields in the key US 10-year reference, dropping around 11 bps since last week’s tops in the 2.44% neighbourhood.
In the US data space, Challenger job cuts rose 30.1% in November, or 35.0K, while initial claims came in at 236K on a weekly basis, retreating for the third consecutive week.
Looking ahead, November’s non-farm payrolls will be the salient event tomorrow seconded by the advanced gauge of US consumer sentiment for the current month.
US Dollar relevant levels
As of writing the index is gaining 0.14% at 93.69 and a break above 93.80 (high Dec.7) would open the door to 94.03 (23.6% Fibo of 2017 drop) and finally 94.17 (high Nov.21). On the flip side, the next support emerges at 92.50 (low Nov.30) seconded by 91.78 (low Sep.22) and then 91.53 (low Sep.20).
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 securities. 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 Forex 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.