DXY inter-markets: scope for a test of 100.00 near-term

The US Dollar Index (DXY) - which tracks the buck vs. its main competitors - remains on the upside following the recent victory of Donald Trump in the US elections, all backed by hopes of the implementation of fiscal measures regarding infrastructure and policies on trade and immigration, all oriented to boost economic growth.

The bull run in USD remains bolstered by the upbeat sentiment in the US money markets, with the 10-year benchmark clinching multi-month highs in the vicinity of 2.10%, among other solid performances of its peers.

Adding to the buying pressure around the dollar, CME Group’s FedWatch tool points to a probability of more than 71% of a rate hike by the Federal Reserve in December.

In the meantime, DXY remains well underpinned by the 6-month support line – today at 95.70 – while interim support appears in the 95.80/96.70 band, where are located the 200-, 100- and 55-day sma. On the other hand, the immediate hurdle lies at recent highs above 99.00 the figure, followed by 2016 tops in the vicinity of the psychological barrier at 100.00.

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