US Dollar turns positive above 100.00

After bottoming out below 99.50 in early trade, the US Dollar Index – which measures the buck vs. its main rivals – has now regained the 100.00 handle and above.

US Dollar boosted by data

The index has managed to fully recover from the initial drop, not only retaking the psychological 100.00 handle but also printing fresh yearly highs in the 100.25/30 band.

USD has derived extra support from auspicious results from US Retail Sales during October and higher-than-expected Empire State Manufacturing index for the current month.

In addition, at his speech today, Boston Fed E.Rosengren (voter, dovish) suggested that a looser fiscal policy would mean faster rate hikes, while D.Tarullo advocated for a cautious debate around Fed’s tightening.

Furthermore, speculative positioning is also lending support to the buck. Despite net longs have retreated to 3-week lows during the week ended on November 8, they keep the area of multi-month peaks according to the latest CFTC report.

US Dollar relevant levels

The index is up 0.18% at 100.21 and a break above of 100.25 (2016 high Nov.15) would target 100.60 (high Dec.3 2015). On the other hand, the next support aligns at 99.20 (low Nov.14) followed by 98.39 (20-day sma) en route to 96.94 (low Nov.4). On the flip side,

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