US Dollar trims gains, aims to 98.80

The greenback, in terms of the US Dollar Index, has now reverted the initial negative tone and is looking to regain the 98.80 area.

US Dollar attention to data, US politics

The index is struggling to advance for the fifth session in a row so far today, although it has managed to revert the overnight dip towards the mid-98.00s.

It is worth recalling that USD has intensified its rally following Trump’s victory on Wednesday, bouncing off lows in sub-96.00 levels to fresh highs beyond the critical barrier at 99.00 the figure on Thursday.

Solid performance from US yields has lent extra legs to the buck, supported at the same time by increasing expectations of a Fed’s move by end of 2016. Currently, CME Group’s FedWatch tool sees the probability of higher rates next month at above 71%, based on Fed Fund futures prices.

In the US data space, November’s flash Consumer Sentiment tracked by the Reuters/Michigan index is due along with a speech by FOMC’s S.Fischer (permanent voter, hawkish).

US Dollar relevant levels

The index is losing 0.03% at 98.76 and a breakdown of 96.94 (low Nov.4) would target 95.91 (low Nov.9) en route to 95.82 (200-day sma). On the other hand, the immediate support is located at 99.09 (high Oct.25) followed by 99.95 (high Jan.21) and then 100.60 (high Dec.3).