US Dollar through 100.00, 2016 fresh tops

The greenback – tracked by the US Dollar Index – met further upside pressure on Monday, now advancing to fresh YTD peaks above the critical 100.00 handle.

US Dollar extends the rally

The index is extending its upside momentum for the second week in a row so far today, including a test, albeit brief, of fresh yearly peaks just above the psychological 100.00 handle.

Rising US yields in combination with expectations of a rate hike by the Federal Reserve in December and growing optimism following D.Trump’s victory on Wednesday keep sustaining the rally in the buck, which now faces 2015 tops in the mid-100.00s.

According to CME Group’s FedWatch tool, the probability of a rate hike by the Federal Reserve at the December meeting is now above 81%, based by Fed Funds futures prices.

Looking ahead, Dallas Fed R.Kaplan (2017 voter, neutral), Richmond Fed J.Lacker (2018 voter, hawkish) and San Francisco Fed J.Williams (2018 voter, neutral) are all due to speak throughout the day and keep the focus on the buck.

US Dollar relevant levels

The index is up 0.88% at 99.93 and a break above of 100.04 (high Nov.14) would target 100.60 (high Dec.3 2015). On the other hand, the next support aligns at 99.20 (low Nov.14) followed by 98.29 (20-day sma) en route to 96.94 (low Nov.4).

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