US Dollar turns positive above 98.00

The US Dollar Index – which gauges the buck vs. its main rivals – has recovered the smile today, now printing weekly tops above the 98.00 handle.

US Dollar supported around 96.00

After bottoming out in sub-96.00 levels during overnight trade, dip-buyers have lifted the index back above the 98.00 mark and to fresh multi-day tops near 98.30 as the dust after Trump’s victory commenced to settle.

US yields are trading in the negative ground in the shorter end of the curve, while gains are accelerating in the belly and the longer end. The 10-year benchmark is currently up more than 5%, trading in session tops above 1.96%, levels last seen in March.

USD is expected to remain in centre stage as monetary policy should recover its role as driver of the markets’ sentiment. Currently, CME Group’s FedWatch tool notes the probability of a Fed’s rate hike by end of 2016 at above 71%.

US Dollar relevant levels

The index is advancing 0.31% at 98.16 and a breakout of 99.09 (high Oct.25) would open the door to 99.95 (high Jan.21) and then 100.60 (high Dec.3). On the flip side, the immediate support aligns at 95.91 (low Nov.9) followed by 95.80 (200-day sma) and finally 95.67 (6-month support line).

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