US Dollar finds support near 101.00

The US Dollar Index – which gauges the buck vs. a basket of its main rivals – keeps its buoyancy intact at the end of the week, managing to stay above the 101.00 mark.

US Dollar boosted by data

The index is trading in levels last seen in March 2003 above 101.00 the figure, boosted by recent auspicious results from the US docket, supportive Fedspeak and rising bets on a rate hike by the Federal Reserve at its meeting next month.

In fact, yesterday’s inflation figures reinforced the recent uptrend in US consumer prices, while Initial Claims in levels seen more than 20 years ago and the solid health from the housing sector have added to last week’s auspicious improvement from Retail Sales, all collaborating with the USD-rally.

Furthermore, Yellen’s testimony on Thursday plus today’s comments by FOMC’s Bullard and Kaplan have opened further the door to rates by year-end. Currently, CME Group’s FedWatch tool sees the probability of a rate hike next month at above 90%.

US Dollar relevant levels

The index is gaining 0.16% at 101.05 facing the next hurdle at 101.37 (high Nov.18) followed by 102.19 (monthly high Apr.2003) and finally 102.68 (monthly high March 2003). On the flip side, a breakdown of 99.38 (low Nov.14) would open the door to 99.13 (high Nov.11) and then 98.80 (20-day sma).

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