Brocker.Org: US Dollar moves to daily highs beyond 99.00


The greenback, tracked by the US Dollar Index (DXY), is extending its weekly recovery vs. its major rivals above the key 99.00 barrier.

US Dollar looks to Fedspeak

The index has regained the 99.00 handle and above on Tuesday, prolonging its positive start of the week and quickly leaving behind the critical area in the 99.00 neighbourhood, where sit the 200-day sma and the 12-month support (previous resistance) line.

USD is deriving support mainly from the persistent sell-off in EUR, particularly after centrist Emmanuel Macron’s win at the second round of the French elections on Sunday.

Adding to the upbeat sentiment around the buck, Cleveland Fed L.Mester has advocated for a faster tightening by the Fed on Monday, stressing at the same time the solid performance of the US fundamentals (especially the labour market).

In the data space, the NFIB index is due later seconded by the IBD/TIPP gauge. Further Fedspeak is also in the pipeline, with speeches by Minneapolis Fed N.Kashkari (voter, dovish), Boston Fed E.Rosengren (2019 voter, hawkish) and Dallas Fed R.Kaplan (voter, hawkish).

US Dollar relevant levels

The index is gaining 0.23% at 99.26 facing the next hurdle at 99.36 (20-day sma) ahead of 99.47 (38.2% Fibo of the April-May drop) and finally 99.94 (high Apr.21). On the flip side, a break below 98.97 (low May 9) would aim for 98.36 (2017 low May 8) and then 96.94 (low Nov.4 2016).