US Dollar firmer around 93.30

Pablo Piovano FXStreet

The greenback, tracked by the US Dollar Index (DXY) is trading on a firm fashion at the end of the week, managing to regain the 93.00 barrier and above following the opening bell in Euroland.

US Dollar bid on budget approval

The demand for the buck picked up pace after the US Senate approved late on Thursday the Republicans-backed budget, a big step towards the implementation of the promised tax reform.

The index thus managed to revert two consecutive daily pullbacks and retake the constructive outlook above the key 93.00 mark.

Additionally, USD remains well underpinned by expectations of further tightening by the Federal Reserve via rate hikes. In this regard, the probability of higher rates to be announced at the December meeting is above 90% according to CME Group’s FedWatch tool.

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 today’s data space, the only release of note will be September’s existing home sales.

US Dollar relevant levels

As of writing the index is gaining 0.30% at 93.21 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).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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