US Dollar pushes higher, 99.00 on the radar

The US Dollar Index – which tracks the buck vs. its main rivals – continues its march north unabated today, now advancing to fresh peaks near 98.80.

US Dollar in fresh 8-month tops

The index is adding gains to October’s needle-like upside, currently clinching new 7-month highs in the vicinity of 98.80, levels last seen in early February.

USD keeps its upbeat sentiment everything but abated for the fourth week in a row, always propped up by increasing expectations of the Federal Reserve finally delivering at its September meeting.

At the moment, and according to CME Group’s FedWatch tool, the probability of a Fed’s rate hike by end 2016 is nearly 70%.

Yields in US money markets are performing in a mixed fashion, with the green prevailing in the shorter end of the curve and the 10-year benchmark testing lows just above 1.73%.

In the meantime, the next up barrier for DXY emerges in the ‘triple tops’ area between 99.75 and 99.95, where is located the YTD peak.

US Dollar relevant levels

The index is up 0.41% at 98.72 and a break above 99.95 (high Jan.21) would aim for 100.60 (high Dec.3). On the other hand, the next support aligns at 97.47 (low Oct.12) followed by 96.83 (20-day sma) and finally 95.87 (200-day sma).