US Dollar recovery falters near 100.50

The US Dollar Index, which tracks the buck against a basket of its main rivals, has reverted the initial negative tone and is now navigating around 100.30/25.

US Dollar bid on data, supported at 100.00

The index found quite decent support around the psychological 100.00 handle so far today, regaining the positive ground and extending the upbeat tone after US Factory Orders have surpassed estimates during October.

Adding to the dollar’s upside, IBD/TIPP’s Business Optimism index has also followed suit, climbing above expectations to 54.8 for the current month.

In the broader picture, the case for a stronger USD in the coming months remains intact and always sustained by expectations of tighter monetary conditions by the Federal Reserve, prospects of looser fiscal policies under Trump’s presidency and perspective of higher inflation expectations.

Adding to the view, NY Fed W.Dudley argued that markets consider hiking at a faster pace over time as logical, while he said markets expectations of fiscal stimulus are ‘reasonable’.

US Dollar relevant levels

The index is advancing 0.15% at 100.31 and a breakout of 100.64 (20-day sma) would open the door to 101.88 (high Nov.30) and then 102.12 (2016 high Nov.24). On the flip side, the immediate support aligns at 99.87 (low Dec.5) followed by 99.70 (23.6% Fibo of May-November up move) and finally 99.38 (low Nov.14).