US Dollar flirts with highs near 102.00

The greenback has recovered its shine in the second half of the week, now testing the key barrier at 102.00 the figure in terms of the US Dollar Index (DXY).

US Dollar firmer after FOMC

The index is posting gains for the third straight session so far, quickly leaving behind Wednesday’s lows in the 100.70 region and setting sales for a test of the critical barrier at 102.00, levels traded for the last time over a decade ago.

The FOMC left no room for surprises yesterday, paving the way for further tightening of the monetary policy via higher rates likely to be announced at the next meeting in December.

In addition, auspicious results from Durable Goods Orders during last month, a healthy manufacturing PMI expected in November and a solid print from Consumer Sentiment this month have all added to the upbeat mood around the buck and are sustaining further the ongoing rally.

Nothing from the US docket today due to the observance of the Thanksgiving Day holiday, while October’s Goods Trade Balance figures are due tomorrow ahead of the advanced Services PMI gauged by Markit.

US Dollar relevant levels

The index is up 0.25% at 101.98 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 99.36 (20-day sma).