US Dollar probing daily highs around 93.00

The greenback, in terms of the US Dollar Index, remains on a firm note so far this week and is now testing daily peaks in the 93.00 neighbourhood.

US Dollar Index focus on US data, tax reform

The index gathered extra pace after investors perceived as hawkish yesterday’s message from Chairwoman J.Yellen, who reinforced the Fed’s stance towards further tightening.

In this regard, CME Group’s FedWatch tool now sees the probability of a third rate hike at the December meeting at 76.4% from nearly 38% seen a month ago.

The up move in the buck is well sustained by an uptick in US yields, where the key 10-year reference has surpassed the 2.25% level, printing fresh daily highs at the time of writing.

On the US positioning front, pending home sales and durable goods orders are expected later in the NA session. In addition, FOMC’s L.Brainard (permanent voter, dovish), Minneapolis Fed N.Kashkari (voter, dovish), St. Louis Fed J.Bullard (2019 voter, dovish) and Boston Fed E.Rosengren (2019 voter, centrist) are also due to speak.

US Dollar relevant levels

As of writing the index is gaining 0.27% at 93.06 and a break above 93.35 (high Aug.31) would open the door to 94.03 (23.6% Fibo of the 2017 drop) and finally 94.14 (high Aug.16). On the other hand, the immediate support lines up at 92.37 (10-day sma) seconded by 91.61 (low Sep.20) and finally 91.01 (2017 low Sep.8).