US Dollar firmer, 101.00 on sight

The upside momentum around the greenback is well and sound at the end of the week, now sending the US Dollar Index – which tracks the buck vs. its main rivals – to daily highs in the vicinity of 10.80.

US Dollar attention to Trump, data

The index has been trading on a firm fashion since Monday and remains on its way to close its first week with gains after six consecutive pullbacks.

The upbeat tone around the buck has been boosted further on Thursday after President D.Trump hinted that a (‘phenomenal’) tax reform should be in the offing and likely to be announced within the next 2-3 weeks.

Those comments have resurfaced the reflation and growth trades that were behind the Dollar’s rally at the end of last year, sending the index to 14-year tops just below 104.00 the figure in early January.

Adding to the recent buying interest around USD, Fed speakers continue to support the view of three rate hikes this year (as projected at the FOMC meeting in December) while emphasizing at the same time the solid health of the US economy.

In the data space, Export/Import Price index, and the advanced Consumer Sentiment gauge for the current month are all due later in the NA session.

US Dollar relevant levels

The index is gaining 0.15% at 100.81 facing the next resistance at 101.02 (high Jan.30) ahead of 101.34 (55-day sma) and finally 101.71 (high Jan.19). On the other hand, a breach of 100.33 (20-day sma) would open the door to 100.03 (low Feb.8) and then 99.91 (low Feb.7).