After a brief knee-jerk to the 98.10 area, the US Dollar Index – which tracks the greenback vs. its main rivals – has managed to recover the 98.30 region so far.
US Dollar extends the upside above 98.00
The greenback has started the week on a positive note despite the US docket showed poor results from the Chicago PM index and Pending Home Sales during January, prolonging its upside momentum for the third week in a row.
The index has regained the 98.00 mark and beyond, as expectations of a Fed’s rate hike have found renewed traction as of late, especially after the auspicious results from the PCE seen last Friday.
Furthermore, the GDPNow model forecast tracked by the Atlanta Fed now sees the economy expanding at a seasonally adjusted annual rate of 2.1% during Q1’16.
US Dollar relevant levels
The index is up 0.21% at 98.34 facing the next hurdle at 98.85 (76.4% Fibo of 99.95-95.28) followed by 99.75 (high Jan.6) and finally 99.95 (high Jan.21). On the other hand, a breach of 97.61 (50% Fibo of 99.95-95.28) would target 97.10 (200-day sma) en route to 96.90 (20-day sma).
(Market News Provided by FXstreet)
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