US Dollar Index remains bid and close to 97.00

The index stays firm and trades close to the 97.00 handle.
US Producer Prices bettered estimates en October.
US advanced Consumer Sentiment came in at 98.3 in November.

Pablo Piovano FXStreet

The US Dollar Index (DXY) continues its firm march on Friday, although it has shed some ground after daily peaks around 96.90.

US Dollar to close its fourth straight week with gains

The index has quickly left behind a negative start of the week, which saw the buck falling as low as the 95.70/65 band on Wednesday, just to meet fresh dip-buyers and retake the upper 96.00s at the end of the week.

The buying bias returned to the greenback, as the negative mood kicked in around the riskier assets in response to uncertainty around Brexit and Italian politics.

In addition, market participants continue to factor in another rate hike by the Federal Reserve in December following yesterday’s FOMC meeting, all sustaining the weekly recovery in DXY.

In the US data space, the US Consumer Sentiment is expected to come in at 98.3 in November, surpassing forecasts. Earlier, Producer Prices rose more than expected during last month.

US Dollar Index relevant levels

As of writing the index is gaining 0.14% at 96.79 and a breakout of 96.92 (high Nov.9) would open the door to 97.19 (2018 high Oct.31) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop). On the flip side, the next support emerges at 95.56 (10-day SMA) followed by 96.17 (21-day SMA) and finally 95.68 (low Nov.7).

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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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