US Dollar pushes higher near 102.00 ahead of FOMC

The US Dollar Index – which tracks the buck vs. its main competitors – has accelerated its upside today to the 101.80 region, fresh 13-year peaks.

US Dollar stronger post-data

USD has managed to break above the consolidative theme around 101.00 the figure seen in early trade following auspicious results from the IUS docket.

In fact, the index has rapidly accelerated its upside after headline US Durable Goods Orders jumped nearly 5% on a monthly basis in October, crushing initial estimates. Further positive data saw the advanced manufacturing PMI gauged by Markit at 53.9 for the current month vs. 53.4 expected and previous.

In addition, final figures for the Consumer Sentiment measured by the Reuters/Michigan Index surpassed expectations at 93.8.

On the not so bright side, Initial Claims rose 251K WoW, taking the 4-Week Average to 251.00K from 253.00K. In the same line, New Home Sales failed to meet consensus in October, increasing by 563K units, or contracting 1.9%.

USD remains well underpinned by the likeliness of the Fed announcing further tightening of its monetary policy at the December meeting, with that probability hovering over 94% according to CME Group’s FedWatch tool.

Further support comes from the US money markets, with the yield of the 10-year benchmark flirting with the 2.40% area, levels last seen in July 2015.

US Dollar relevant levels

The index is up 0.73% at 101.83 and a breakout of 102.19 (monthly high Apr.2003) would expose 102.68 (monthly high March 2003). On the flip side, the immediate support aligns at 100.71 (low Nov.22) followed by 99.38 (low Nov.14) and finally 99.17 (20-day sma).

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