US Dollar buoyant around 96.50

The greenback, gauged by the US Dollar Index, is extending its rally at the beginning of the week, currently navigating the mid-96.00s.

US Dollar capped around 96.80

The index is fading the initial spike to the 96.80/85 band, or 3-week tops, as the buying interest now seems to be taking a breather.

The rally in USD remains supported by recent strong figures from June’s Non-farm Payrolls (287K), as market expectations of a potential rate cut by the Federal Reserve have been drastically reduced.

Ahead in the NA session, Fed’s Labor Market Conditions Index is only scheduled today, followed by KC Fed’s President E.George (hawk, voter).

US Dollar relevant levels

The index is up 0.25% at 96.55 and a breakout of 96.86 (high Jun.27) would open the door to 97.09 (high Mar.16) and finally 98.58 (high Mar.1). On the flip side, the immediate support lines up at 95.38 (low Jul.5) followed by 95.23 (100-day sma) and then 94.78 (55-day sma).