US Dollar buoyant around 98.00 ahead of data

The greenback, measured by the US Dollar Index, is prolonging its upside into the second half of the week to levels above the 98.00 handle.

US Dollar attention to ECB, US data

The index is advancing for the third session in a row albeit at a snail-pace so far as market participants keep adjusting to the recent tepid results from the US docket, which seem to have mitigated the upside sentiment stemming from rising speculations on a Fed’s rate hike by end of 2016.

Later in the day, the ECB is expected to keep its monetary stance unchanged, but market consensus sees President M.Draghi delivering a dovish message at his press conference, which could in turn support further the case for a stronger buck via decreasing demand for the euro.

Back to the US docket, Initial Claims are to be published followed by the Philly Fed manufacturing survey, Existing Home Sales and the speech by NY Fed W.Dudley (permanent voter, neutral).

US Dollar relevant levels

The index is up 0.08% at 98.00 and a break above 98.59 (high Mar.3) would aim for 99.95 (high Jan.21) and then 100.60 (high Dec.3). On the other hand, the next support aligns at 97.47 (low Oct.12) followed by 96.66 (20-day sma) and finally 95.87 (200-day sma).