US Dollar advances to highs near 95.40

The greenback, tracked by the US Dollar Index, is extending its sideline theme for the time being, currently up smalls and navigating around the 95.30/40 area.

US Dollar focus on US data

The index has quickly shrugged off poor results from August’s Retail Sales released on Thursday, sticking to the comfort zone around 95.40/30 in line with the flat sentiment around the global markets.

Always against the backdrop of expectations of a potential rate hike by the Fed next week, market participants will closely follow today’s US inflation figures measured by the CPI and the Reuters/Michigan index.

Consensus expects headline consumer prices to have ticked higher at an annualized 1.0% during last month (from 0.8%), while Consumer Sentiment is seen improving to 90.8 in September (vs. 89.8 prev.).

US Dollar relevant levels

The index is advancing 0.09% at 95.37 and a breakout of 95.67 (high Sep.13) would open the door to 95.80 (55-day sma) and finally 96.25 (high Sep.1). On the downside, the immediate support aligns at 94.68 (support line off 2016 low) ahead of 94.05 (low Aug.18) and then 93.03 (low Jun.23).