US Dollar keeps pushing higher, in tops near 93.70

Pablo Piovano FXStreet

The US Dollar index, which gauges the buck vs. its main rival currencies, is extending the advance to fresh 2-day tops in the 93.70 area.

US Dollar underpinned near 93.00

The index found dip-buyers around Thursday’s lows in the 93.00 neighbourhood, prompting the greenback to return to the positive territory and move to fresh 2-day highs in the 93.70 region.

Optimism around the buck rose after the Senate approved the Republicans-backed budget late on Thursday, bringing the implementation of the Trump’s tax reform even closer.

Additionally, the upside momentum around the US money markets stays everything but abated and is now lifting yields of the 10-year benchmark to fresh multi-day tops just below the 2.39% handle.

Collaborating with the up move in USD, expectations of further tightening by the Federal Reserve via rate hikes remain on the rise and, according to CME Group’s FedWatch tool, the probability of higher rates in December stays above 90% based on Fed Funds futures prices.

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 the US data space, existing home sales expanded 0.7% in September, or to 5.39 million units, surpassing prior surveys.

US Dollar relevant levels

As of writing the index is gaining 0.55% at 93.64 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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