US Dollar extends the upside above 98.00

The greenback – tracked by the US Dollar Index – remains on a firm footing so far this week, now advancing to fresh tops above 98.00 the figure.

US Dollar focus on data, Fedspeak

The index so far manages to keep the trade in 7-month lows around the 98.00 neighbourhood, propped up by speculations on a potential Fed move by year-end. According to Fed Funds futures prices, CME Group’s FedWatch tool now sees the probability of a rate hike in December at 64%.

USD kept the composure as yesterday’s FOMC minutes showed nothing new from the Committee. In fact, members’ views are still quite divided, while further tightening remains ‘data dependent’.

On the US data front, Initial Claims are due later in the NA session, followed by Export/Import Prices and the EIA’s weekly report on crude oil inventories. Furthermore, Philly Fed P.Harker (2017 voter, hawkish) is due to speak on ‘Economic Outlook’.

US Dollar relevant levels

The index is down 0.03% at 97.93 and a break 98.59 (high Mar.3) would open the door to 99.95 (high Jan.21) and the 100.60 (high Dec.3). On the downside, the initial support aligns at 96.14 (20-day sma) ahead of 95.64 (55-day sma) and finally 95.20 (support line off 2016 low).