US Dollar in highs near 101.70 post-data

Pablo Piovano FXStreet

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).

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.

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.