US Dollar Index clings to modest daily gains, just above mid-96.00s

Haresh Menghani FXStreet

The US Dollar Index (DXY) built on its steady intraday climb and is currently placed at daily tops, around the 96.60-65 region.

The greenback regained positive traction on the first trading day of the week and the uptick was primarily supported by renewed selling around the British Pound, triggered by a report that the UK PM Theresa May will pull Tuesday's meaningful vote.

Adding to this, a fresh wave of global risk-aversion trade, amid rising US-China tensions, following the arrest of a top Chinese executive in Canada at the request of the US, further underpinned the USD's relative safe-haven status.

The gains, however, remained capped in wake of growing speculations over a possible pause in the Fed rate hike cycle in 2019, especially after Friday's dismal US monthly jobs report, showing that the US economy added only 155K new jobs in November.

Hence, it would be prudent to wait for a strong follow-through buying before traders start positioning for any further near-term up-move ahead of next week's latest FOMC monetary policy decision on Dec. 19.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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