US Dollar loses the grip near 98.50, US docket eyed

The greenback, in terms of the US Dollar Index, is extending its daily pullback to the mid-98.00s for the time being.

US Dollar now focused on data

The index is retreating for the third straight session so far, deflating from Tuesday’s fresh 9-month tops in levels just above the 99.00 handle amidst a renewed selling pressure around the buck.

However, retracements are expected to remain shallow as expectations of a rate hike by the Federal Reserve at the December meeting keep growing. In this regard, CME Group’s FedWatch tool signals the probability of higher rates by end of 2016 at more than 70%, based on Fed Funds future prices.

Ahead in the session, USD will grab further attention in light of the releases of Initial Claims, Pending Home Sales and Durable Goods.

US Dollar relevant levels

The index is losing 0.09% at 98.54 and a breakdown of 98.31 (low Oct.26) would aim for 97.50 (20-day sma) and finally 95.86 (200-day sma). On the other hand, the next hurdle is located at 99.09 (high Oct.25) followed by 99.95 (high Jan.21) and then 100.60 (high Dec.3).