US Dollar bid near 98.90 after data

The US Dollar Index – which tracks the buck against a basket of its main rivals – has recovered the smile and is now testing the area of 98.90, closer to daily highs.

US Dollar stronger on data

The index picked up extra pace after the advanced Reuters/Michigan index showed US Consumer Sentiment is expected to improve to 91.6 during November, up from October’s 87.2 and exceeding estimates at 89.5.

Previously, Fed’s Vice Chairman S.Fischer has advocated for a gradual tightening by the Fed, adding that the economy is closer to achieve its employment and inflation goals.

USD remains supported by the strong pick up in US yields, rising expectations of a Fed’s move by year-end and increasing optimism on a ‘market-friendly’ presidency by Donald Trump.

US Dollar relevant levels

The index is up 0.09% at 98.87 facing the next hurdle at 99.09 (high Oct.25) followed by 99.95 (high Jan.21) and then 100.60 (high Dec.3). On the downside, a break below 96.94 (low Nov.4) would target 95.91 (low Nov.9) en route to 95.82 (200-day sma).

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