US dollar index rises again but fails to hold above 99.00

The US dollar rose again for the second day in a row in the market but the best performer among the most traded currencies was the pound. Emerging market currencies dropped sharply amid uncertainty over Donald Trump’s policies and expectations of rising global rates. 

Risk sentiment remained elevated in Wall Street and the Dow Jones was rising 1.43% headed toward a record close. US bond yields continued to rise, with the 10-year hitting 2.12%, the highest level in 10 months.

DXY again testing 99.00

The US dollar index (DXY) which gauges the US dollar against its main competitors, rose after the beginning of the American session to test October highs. It peaked at 99.03 but then pulled back. The area around 99.00 capped the upside and remains the key level to break to the upside. 

From the highs, it pulled back finding support at 98.60. It was about to end the day trading around 98.70, up 0.05% for the day. 

Tomorrow in the US will be Veteran’s Day and the bond market will be closed. Regarding economic data, consumer confidence data will be released. 

Today was the turn of initial jobless claims data that dropped from 265K to 254K, below the 260K expected. Fed’s speakers on Thursday continue to signal a potential rate hike in December, that contributed to the strength of the US dollar. 

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